NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Intel Soars 11.3%

SP500 Tests Support at 7425 – 7435

SP500 pulled back from session highs as traders took some money off the table after the strong rebound.

Oil prices gained ground as Iran and Israel launched strikes against each other. However, oil prices pulled back from session highs after President Trump called Israel’s Prime Minister Netanyahu and asked him to stop retaliation against Iran. In turn, Iran announced that it ended the military operation against Israel. Interestingly, the rally in the oil markets did not put any pressure on SP500.

Treasury yields moved higher as bond traders reacted to rising oil prices. The yield of 2-year Treasuries settled above the 4.15% level, while the yield of 10-year Treasuries climbed above 4.55%.

Tech stocks were among the biggest gainers today as traders bought the dip. Energy stocks gained ground as traders focused on rising tensions in the Middle East.

Interestingly, most market sectors pulled back in today’s trading session. Utilities and real estate stocks were among the biggest losers as traders reacted to rising Treasury yields.

Currently, SP500 is trying to settle back below the support level at 7425 – 7435. In case this attempt is successful, SP500 will move towards the next support, which is located in the 7350 – 7360 range. RSI has moved back into the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

NASDAQ Moved Higher On Dip-Buying

NASDAQ gained ground as traders rushed to buy tech stocks after the strong sell-off. Intel, which gained 11.3%, was the biggest gainer in the NASDAQ index today. The stock rallied amid reports indicating that it signed a chip deal with Alphabet.

Apple pulled back by -1.5% as traders were not impressed by the company’s AI offering. It should be noted that Apple stock often pulls back when the company presents its products as traders sell the news. The stock is trading close to historic highs and is up more than 10% year-to-date.

The nearest resistance level for NASDAQ is located in the 29,700 – 29,750 range. A successful test of this level will push NASDAQ towards the next resistance, which is located in the 30,150 – 30,200 range.

On the support side, NASDAQ needs to settle below the support at 29,250 – 29,300 to gain downside momentum in the near term.

Dow Jones Remained Stuck Below The 51,000 Level

Dow Jones was mostly flat as the market stabilized after pullback. Cisco, which was up by 2.9%, was the biggest gainer in the Dow Jones index today. The company’s shares gained ground amid rising demand for tech stocks.

In case Dow Jones manages to settle above the resistance at 51,000 – 51,100, it will move towards the next resistance, which is located in the 51,600 – 51,700 range.

On the support side, the nearest support level for Dow Jones is located in the 50,400 – 50,500 range. If Dow Jones declines below the 50,400 level, it will head towards the psychologically important 50,000 level.

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