NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back From Session Highs Amid Rising Oil Prices

SP500 Attempts To Settle Below The 7450 Level

SP500 is losing ground as traders focus on rising oil prices. WTI oil climbed towards the $83.00 level as Houthis announced that they would impose maritime blockade on Saudi Arabia. Earlier, Houthis claimed that Saudi Arabia attacked their facilities.

President Trump said that Iran would “pay” for killing three U.S. soldiers. Traders worry about additional escalation in the Middle East, which is bullish for oil prices.

Rising oil prices pushed Treasury yields higher as bond traders bet on hawkish Fed. The yield of 2-year Treasuries climbed above the 4.21% level, while the yield of 10-year Treasuries settled near 4.60%. Bond traders believe that Fed will raise rates at the meeting in September.

Not surprisingly, energy stocks were among the biggest gainers in the SP500 index today. Most market sectors moved lower in today’s trading session amid inflation worries.

Currently, SP500 is trying to settle below the support level at 7450 – 7460. This support level has been tested many times and proved its strength. In case SP500 settles below the 7450 level, it will head towards the next support, which is located in the 7360 – 7370 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Retreats From Session Highs As Treasury Yields Rise

NASDAQ pulled back from session highs amid worries about escalation in the Middle East. Intel, which was up by +2.8%, was among the biggest gainers in the NASDAQ index today.

From a big picture point of view, traders have already started to prepare for key earnings reports, which will be released this week. Intel, Alphabet, and Tesla will present their quarterly results. These earnings reports will likely have a material impact on market dynamics.

NASDAQ made an attempt to settle above the resistance level at 28,800 – 28,850 but lost momentum and pulled back towards the 28,700 level. In case NASDAQ declines below 28,600, it will head towards the nearest support, which is located in the 28,250 – 28,300 range.

On the upside, NASDAQ needs to settle above the 28,850 level to gain upside momentum in the near term. A move above the 28,850 level will open the way to the test of the resistance level at 29,350 – 29,400.

Dow Jones Tests New Lows As Pullback Continues

Dow Jones is losing ground as traders worry about hawkish Fed. FedWatch Tool indicates that there is a 16.6% probability that Fed will raise rates in July. The probability of a rate hike in September is estimated at 63%.

From the technical point of view, Dow Jones settled below the support level at 52,100 – 52,200 and is trying to settle below the 51,800 level. In case this attempt is successful, Dow Jones will move towards the next support, which is located in the 51,400 – 51,500 range.

On the upside, a move above the 52,200 level will push Dow Jones towards the 50 MA at 52,428. In case Dow Jones settles above the 50 MA, it will move towards the resistance at 52,700 – 52,800.

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