NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Micron Gains 6%

SP500

SP500 gains some ground as traders react to the better-than-expected Industrial Production report. The report showed that Industrial Production increased by +0.4% month-over-month in December, compared to analyst forecast of +0.1%. Treasury yields moved higher as traders bet that Fed will not cut rates in the near term due to strong economy. Today, traders also had a chance to take a look at the NAHB Housing Market Index report. The report showed that NAHB Housing Market Index decreased from 39 in December to 37 in January, compared to analyst consensus of 40. Real estate and industrials stocks were among the biggest gainers in today’s trading session. Basic materials stocks found themselves under pressure amid strong pullback in precious metals markets.

SP500 made an attempt to settle below the support at 6940 – 6950 but lost momentum and rebounded above the 6960 level. In case SP500 moves above the 6980 level, it will head towards the nearest resistance, which is located in the 7000 – 7010 range.

NASDAQ

NASDAQ has also managed to gain some ground ahead of the weekend amid rising demand for tech stocks. Micron, which was up by 6%, was the biggest gainer in the NASDAQ index today.

In case NASDAQ settles back above the 50 MA at 25.585, it will move towards the resistance level at 25,800 – 25,850. RSI is in the moderate territory, and there is plenty of room to gain upside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones remains stuck below the key resistance level at 49,500 – 49,600 as traders wait for additional catalysts. American Express, which is up by 2.8%, is the best performer in the Dow Jones index today.

A successful test of the resistance at 49,500 – 49,600 will push Dow Jones towards the psychologically important 50,000 level.

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