NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Tesla Gains 5.8%

SP500 Moves Higher As Composite PMI Exceeds Analyst Estimates

SP500 gained ground as traders focus on strong PMI data. Manufacturing PMI decreased from 53.9 in July to 53.2 in August, compared to analyst forecast of 53.9. Services PMI increased from 54.6 to 56.8, exceeding the analyst consensus of 54.

The strength of the services sector provided material support to Composite PMI, which increased from 54.5 to 56.0. Numbers above 50 show expansion.

Oil prices moved higher as traders focused on lack of progress in the Middle East. Iran’s President Masoud Pezeshkian said that it would be better to end the war, but the real power in the country is in the hands of Islamic Revolutionary Guard Corps. Traders bet that IRGC would not listen to Pezeshkian, and the Strait of Hormuz would remain closed for weeks.

Treasury yields moved higher as traders focused on rising oil prices and ignored Treasury’s buyback plans. The yield of 2-year Treasuries climbed above the 4.23% level, while the yield of 10-year Treasuries settled above 4.73%. Rising Treasury yields did not put any pressure on SP500 in today’s trading session.

Basic materials stocks were among the biggest gainers today as traders focused on the rally in precious metals markets. Healthcare and financial stocks have also gained strong upside momentum in today’s trading session. Utilities and real estate stocks moved lower as traders focused on rising Treasury yields.

In case SP500 moves above the 7700 level, it will head towards the resistance level at 7720 – 7730. A move above the 7730 level will open the way to the test of the next resistance at 7790 – 7800. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Gains Ground As Traders Buy The Dip

NASDAQ moved higher as traders ignored high oil prices and focused on rising demand for tech stocks. Strategy, which was up by +6.5%, was the biggest gainer in the NASDAQ index today. The stock rallied as Bitcoin gained 5%.

Tesla  has also gained strong upside momentum as regulators permitted the company to operate up to 5,000 Cybercab robotaxis.

The nearest resistance level for NASDAQ is located in the 29,450 – 29,500 range. If NASDAQ manages to settle above the 29,500 level, it will head towards the 50 MA at 29,719. A move above the 50 MA will open the way to the test of the resistance level at 29,850 – 29,900.

Dow Jones Rebounds From Weekly Lows

Dow Jones  gained strong upside momentum as most stocks in the index moved higher. Goldman Sachs, which was up by +3.8%, was the biggest gainer in the Dow Jones index today.

Currently, Dow Jones is trying to settle above the resistance level at 53,300 – 53,400. In case Dow Jones manages to settle above the 53,400 level, it will head towards the next resistance level, which is located in the 53,900 – 54,000 range. A move above the 54,000 level will open the way to the test of the 54,700 level.

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