NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies Ahead Of NVIDIA’s Report

SP500 Tests Resistance At 7425 – 7435

SP500 rallied as traders focused on the strong sell-off in the oil markets. WTI oil is down by almost 6% amid reports indicating that President Trump said that the U.S. was in the final stages of talks with Iran. It remains to be seen whether U.S. and Iran will be able to reach a deal, but markets are optimistic.

Today, traders also focused on FOMC Minutes. The Minutes indicated that geopolitical uncertainty may force the Fed to keep rates unchanged for a longer time than previously expected. Fed is also ready to raise rates in case inflation keeps moving higher. The market did not react to FOMC Minutes as traders have mostly focused on geopolitical news.

Treasury yields moved lower as bond traders focused on the situation in the Middle East. The yield of 2-year Treasuries declined below the 4.05% level, while the yield of 10-year Treasuries settled near 4.57%. Falling Treasury yields provided additional support to SP500.

Today’s rally was broad, and most market sectors moved higher in today’s trading session. Basic materials stocks were among the biggest gainers as traders reacted to the rally in precious metals markets.

Not surprisingly, energy stocks found themselves under pressure as traders focused on strong pullbacks in oil and natural gas markets.

Currently, SP500 is trying to settle above the resistance level at 7425 – 7430. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 7515 – 7525 range.

On the support side, a move below the 50 MA at 7414 will push SP500 towards the support level at 7350 – 7360.

NASDAQ Rallies As Traders Wait For NVIDIA’s Earnings Report

NASDAQ gained upside momentum ahead of NVIDIA‘s earnings, which will be released today after market close. This report will likely have a major impact on NASDAQ dynamics. NVIDIA’s earnings will highlight the current state of the AI industry. In case the company exceeds expectations and provides strong guidance, traders will rush to buy AI-related stocks.

NASDAQ attempts to settle above the resistance level at 29,200 – 29,250. If NASDAQ manages to settle above the 29,250 level, it will move towards the resistance level at 29,700 – 29,750. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones Tests The 50,000 Level

Dow Jones gained ground amid broad rally in the equity markets. Goldman Sachs, which was up by 5.4%, was the best performer in the Dow Jones index today. The stock rallied as the company would lead the record IPO of SpaceX.

Nike , which gained 4%, was also among the biggest gainers in today’s trading session.

From the technical point of view, Dow Jones settled above the resistance level at 49,700 – 49,800 and is trying to settle above the 50,000 level. In case this attempt is successful, Dow Jones will move towards the next resistance level, which is located in the 50,400 – 50,500 range.

On the support side, a move below the 50 MA at 49,634 will open the way to the test of the support level at 49,000 – 49,100.

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