NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Amazon Soars 15%

SP500 Moves Higher As Traders Ignore Rising Treasury Yields

SP500 gains ground as traders focus on the better-than-expected Michigan Consumer Sentiment report and ignore rising Treasury yields.

Michigan Consumer Sentiment increased from 49.5 in June to 55.2 in July, compared to analyst forecast of 54.0. Current Economic Conditions increased from 47.7 to 54.8, while Index of Consumer Expectations grew from 50.7 to 55.4.

The report indicated that year-ahead inflation expectations declined from 4.6% in June to 4.2% in July. Long-run inflation expectations remained unchanged at 3.3%.

Treasury yields moved higher as bond traders bet on hawkish Fed. The yield of 2-year Treasuries settled above the 4.28% level, while the yield of 10-year Treasuries moved above 4.73%. Traders bet that Fed will raise rates at the next meeting in September. Interestingly, rising Treasury yields did not put pressure on SP500 in today’s trading session.

Consumer cyclical stocks were among the biggest gainers in today’s trading session. Basic materials stocks found themselves under pressure as traders reacted to the pullback in precious metals markets. Real estate and utilities stocks moved lower as traders focused on rising Treasury yields.

SP500 settled above the support at 7450 – 7460 and moved towards the resistance level at 7510 – 7520. In case SP500 manages to settle above the 7520 level, it will head towards the next resistance level at 7565 – 7575. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

On the support side, a move below the support at 7450 – 7460 will push SP500 towards the 7400 level.

NASDAQ Gains Ground As Amazon Rallies

NASDAQ moved higher despite the strong sell-off in Apple stock. Apple is down by -8% as traders react to the company’s earnings report. Traders focus on the weaker-than-expected revenue guidance for the next quarter. Company’s comments about memory chip shortage put additional pressure on Apple’s shares.

Amazon, which soared 15%, was the biggest gainer in the NASDAQ index today. The stock rallied as traders focused on the strong earnings report. Analysts rushed to upgrade the stock, providing additional support to Amazon’s shares.

Currently, NASDAQ is trying to settle above the resistance at 28,300 – 28,350.  In case this attempt is successful, NASDAQ will head towards the next resistance level, which is located in the 28,800 – 28,850.

On the support side, a move below the 28,200 level will push NASDAQ towards the support at 27,850 – 27,900.

Dow Jones Attempts To Settle Above 52,600

Dow Jones moves higher, supported by the strong rally in Amazon stock. Alphabet shares gained 7%, providing additional support to the Dow Jones index.

Currently, Dow Jones is trying to settle above the 52,600 level. In case this attempt is successful, Dow Jones will move towards the nearest resistance level at 52,700 – 52,800.

This resistance level has been tested many times and proved its strength. A successful test of the resistance at 52,700 – 52,800 will open the way to the test of the next resistance level, which is located in the 53,300 – 53,400 range.

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