NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Software Stocks Rebound

SP500 Gains Ground As Traders Bet On De-Escalation In The Middle East

SP500 rebounded from session lows and moved into positive territory as traders reacted to Trump’s comments on Iran. U.S. President said that Iran wanted a deal and signaled that negotiations could restart soon.

Earlier, U.S. imposed a naval blockade on Iran as no deal was reached over the weekend. WTI oil tested the $105 level but lost momentum and pulled back below the $98.00 level. Oil’s pullback from session highs provided material support to major indices.

It should be noted that the Strait of Hormuz is blocked by both Iran and U.S., so the situation in the physical market has not improved. Iran threatened to strike ports in the region due to the naval blockade. At this point, the country has not initiated attacks, and the fragile ceasefire holds.

Today, traders also had a chance to take a look at the Existing Home Sales report for March. The report indicated that Existing Home Sales decreased by -3.6% month-over-month, compared to analyst forecast of -2.0%. The previous report was revised from +1.7% to +2.7%.

Most market sectors gained ground as traders bet on de-escalation in the Middle East. Utilities and consumer defensive stocks declined amid falling demand for safe-haven assets.

Currently, SP500 is trying to settle above the resistance level at 6850 – 6860. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6910 – 6920 range. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term.

NASDAQ Moves Higher Amid Rising Appetite For Risk

NASDAQ tests new highs as demand for stocks increased amid geopolitical optimism.

Cadence Design, Workday, and Atlassian are the biggest gainers in the NASDAQ index today. Software stocks moved higher as some traders were ready to bet on a rebound near multi-year lows.

NASDAQ climbed above the resistance at 25,150 – 25,200 and is tryng to settle above the 25,300 level. If NASDAQ settles above 25,300, it will move towards the next resistance level at 25,750 – 25,800.

On the support side, a move below the 25,000 level will push NASDAQ towards recent lows near the 24,750 level. If NASDAQ settles below 24,750, it will head towards the support at 24,350 – 24,400.

Dow Jones Tests The 48,000 Level

Dow Jones has also managed to rebound from session lows as the appetite for risk increased after Trump’s comments on Iran.

Markets are always forward-looking, so traders have already started to prepare for a potential peace deal between U.S. and Iran.

Saleforce, which was up by 4.5%, was the biggest gainer in the Dow Jones index today. The company’s shares rallied amid rising demand for software stocks. Microsoft, which was up by 3%, has also managed to gain solid upside momentum in today’s trading session.

The nearest resistance level for Dow Jones is located in the 48,200 – 48,300 range. In case Dow Jones climbs above the 48,300 level, it will head towards the next resistance level, which is located in the 49,000 – 49,100 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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