NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As SpaceX Soars 11%

SP500 Moves Higher As Inflation Rate Drops To 3.4%

SP500 gains some ground as traders focus on inflation data. Inflation Rate declined from 3.5% in June to 3.4% in July, in line with analyst expectations. Core Inflation Rate decreased from 2.6% to 2.5%, compared to analyst forecast of 2.5%.

FedWatch Tool indicates that the probability of a rate hike at the next meeting in September declined to 40.1%. Treasury yields moved lower as bond traders reacted to CPI data. The yield of 2-year Treasures declined below the 4.20% level, while the yield of 10-year Treasuries settled near 4.68%. The pullback in Treasury yields provided support to SP500 today.

Traders also focused on the situation in the oil markets. Oil prices were swinging between gains and losses amid geopolitical uncertainty. At this point, there are no signs indicating that U.S. and Iran are ready for a temporary deal.

Industrials and technology stocks were among the biggest gainers in the SP500 today. Consumer cyclical and communication services stocks found themselves under pressure.

If SP500 manages to settle above the 7750 level, it will move towards the nearest resistance level, which is located in the 7790 – 7800 range. A successful test of the resistance at 7790 – 7800 will provide SP500 with an opportunity to gain additional upside momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, the nearest support level for SP500 is located in the 7720 – 7730 level. If SP500 pulls back below the 7720 level, it will head towards the 50 MA at 7704. A move below the 50 MA will push SP500 towards the support at 7615 – 7625.

NASDAQ Tests Resistance At 29,850 – 29,900

NASDAQ moved higher amid rising demand for tech stocks. SpaceX , which was up by +11%, was among the biggest gainers in the NASDAQ index today. The stock rallied as Elon Musk said that the company’s AI business would bring annual revenue of $500 billion.

From the technical point of view, NASDAQ attempts to settle above the resistance level at 29,850 – 29,900. This resistance level has been tested many times and proved its strength. In case NASDAQ manages to settle above the 29,900 level, it will head towards the next resistance at 30,350 – 30,400.

On the support side, a move below the 29,700 level will push NASDAQ towards the 50 MA at 29,402. If NASDAQ pulls back below the 50 MA, it will head towards the support level at 29,200 – 29,250 level.

Dow Jones Remains Stuck Near The 53,800 Level

Dow Jones was mostly flat as traders reacted to inflation report. Cisco, which was up by +2.8%, was the biggest gainer in the Dow Jones index today. The company’s shares moved higher as traders prepared for the earnings report, which will be released today after market close.

If Dow Jones manages to settle below the 50 MA at 53,797, it will head towards the nearest support level, which is located in the 53,300 – 53,350. On the upside, a successful test of the resistance at 54,000 – 54,100 will push Dow Jones towards the next resistance level at 54,600 – 54,700.

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