NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Intel Soars 11%

SP500 Rebounds After Yesterday’s Sell-Off

SP500 rebounds as U.S. and Iran signed the memorandum of understanding. Iran reopened the Strait of Hormuz, and the U.S. lifted the naval blockade of Iranian ports.

SP500 has quickly recovered after the sell-off which was triggered by hawkish signals from the Fed. At this point, traders remain bullish and are not worried about potential rate hikes.

Today, traders also focused on the Initial Jobless Claims report. The report indicated that 226,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000.

Traders also had a chance to take a look at the Philadelphia Fed Manufacturing Index report for June. The report showed that Philadelphia Fed Manufacturing Index grew from -0.4 in May to 10.3 in June, compared to analyst consensus of 10.

It should be noted that the rebound is not broad. Tech stocks are among the biggest gainers in today’s trading session. Real estate and utilities stocks have also managed to gain some ground as traders reacted to the pullback in Treasury yields.

Energy stocks found themselves under pressure despite the rebound in the oil markets. WTI oil climbed above the $76.00 level as some traders were ready to buy the dip. Basic materials stocks have also moved lower as traders focused on the pullback in precious metals markets.

The nearest resistance level for SP500 is located in the 7540 – 7550 range. In case SP500 manages to settle above the 7550 level, it will move towards the next resistance level, which is located in the 7615 – 7625 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ Gains Ground Amid Strong Demand For Tech Stocks

NASDAQ rallied as traders used yesterday’s pullback as an opportunity to increase their long positions in tech stocks. Intel, which was up by +11%, was the among the biggest gainers in the NASDAQ index today. The stock rallied as Trump said that Apple agreed to use Intel’s foundry services for chip manufacturing.

Currently, NASDAQ is trying to settle above the resistance level at 30,250 – 30,300. in case this attempt is successful, NASDAQ will head towards the next resistance at 30,750 – 30,800.

On the support side, a move below the 30,250 level will push NASDAQ towards the nearest support at 29,800 – 29,850.

Dow Jones Tests Support At 51,600 – 51,700

Dow Jones managed to gain some ground but failed to develop strong momentum amid falling demand for healthcare and financial stocks. IBM, which was down by -4.5%, was the biggest loser in the Dow Jones index today.

From the technical point of view, Dow Jones attempts to settle below the support level at 51,600 – 51,700. If Dow Jones manages to settle below the 51,600 level, it will head towards the 50 MA at 51,233. A move below the 50 MA will open the way to the test of the support level at 51,000 – 51,100.

On the upside, Dow Jones needs to settle back above the support at 51,600 – 51,700 to have a chance to gain sustainable upside momentum. In this case, Dow Jones will head towards the resistance level at 52,100 – 52,200.

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