NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests Record Highs As Chevron Soars 5.6%

SP500

SP500 gained ground as traders reacted to the U.S. operation in Venezuela and bet that U.S. oil companies would benefit from recent events. Basic materials stocks were among the biggest gainers as traders focused on the strong rally in precious metals markets, which was driven by geopolitical tensions. Utilities and healthcare stocks pulled back as demand for defensive assets declined. Today, traders also focused on the ISM Manufacturing PMI report. The report showed that ISM Manufacturing PMI decreased from 48.2 in November to 47.9 in December, compared to analyst forecast of 48.3. Numbers below 50 show contraction. The disappointing report did not put any pressure on stocks as the events in Venezuela served as the key catalyst.

SP500 settled above the previous resistance at 6870 – 6880 and is trying to settle above the 6920 level. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 6940 – 6950 range.

NASDAQ

NASDAQ moved higher, supported by general bullish sentiment. Tech stocks failed to gain strong momentum today as traders focused on other sectors.

If NASDAQ manages to settle above the 50 MA at 25,514, it will move towards the next resistance level at 25,800 – 25,850.

Dow Jones

Dow Jones tested historic highs as Chevron  rallied 5.6%. Chevron is still operating in Venezuela, which means that the company will benefit from political changes in the country. U.S. President Donald Trump has already said that U.S. oil companies would be “very strongly involved” in Venezuela’s oil industry.

From the technical point of view, Dow Jones climbed above the resistance at 48,700 – 48,800 and is trying to settle above the 49,200 level. A move above this level will open the way to the test of the psychologically important 50,000 level.

For a look at all of today’s economic events, check out our economic calendar.