NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back Ahead Of Alphabet Report

SP500 Attempts To Settle Above 7500

SP500 is mostly flat as traders react to the strong rally in the oil markets and focus on rising Treasury yields.

WTI oil climbed above the $87.00 level as Joint Maritime Information Center warned that Houthis were ready to attack vessels from positions near the Bab al-Mandeb Strait.

Houthis plan to force Saudi Arabia to use the Suez channel for the country’s oil exports. Tankers will have to go around Africa to bring oil to Asian customers – a long and costly journey. Meanwhile, the Strait of Hormuz remains de-facto closed while U.S. and Iran deliver strikes against each other.

There are no signs of de-escalation, and markets prepare for additional escalation in the Middle East.

Not surprisingly, bond traders bet that Fed will be forced to raise rates to fight inflation. The yield of 2-year Treasuries climbed above the 4.30% level, while the yield of 10-year Treasuries settled above 4.66%. Rising Treasury yields put some pressure on stocks in today’s trading session.

Utilities stocks were among the biggest gainers today as demand for safe-haven assets increased. Basic materials stocks moved higher as traders focused on rising precious metals markets. Energy stocks have also gained ground, supported by the rally in the oil markets.

Consumer cyclical and healthcare stocks were among the biggest losers in the SP500 index today.

The nearest resistance level for SP500 is located in the 7540 – 7550 range. A successful test of this level will push SP500 towards the next resistance at 7615 – 7625.

On the support side, a move below the 7500 level will push SP500 towards the support at 7450 – 7460.

NASDAQ Traders Prepare For Key Earnings Reports

NASDAQ is losing some ground as traders wait for Alphabet and Tesla earnings reports, which will be released today after market close. These reports will have a material impact on NASDAQ dynamics.

In case NASDAQ settles above the 50 MA at 29,200, it will head towards the resistance level at 29,350 – 29,400. A successful test of this level will push NASDAQ towards the next resistance at 29,850 – 29,900.

On the support side, a move below the 29,000 level will open the way to the test of the nearest support at 28,800 – 28,850. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Remains Stuck Near Support At 52,100 – 52,200

Dow Jones as mostly flat as traders monitor dynamics of oil markets and wait for Big Tech reports. Salesforce, which is down by -4%, is the biggest loser in the Dow Jones index today.

Currently, Dow Jones is moving towards the nearest support level at 52,100 – 52,200. In case Dow Jones manages to settle below the 52,200 level, it will head towards recent lows near 51,800. A move below the 51,800 level will push Dow Jones towards the next support at 51,400 – 51,500.

On the upside, a move above the 50 MA at 52,364 will open the way to the test of the resistance level at 52,700 – 52,800.

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