NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Meta Soars 6.5%

SP500 Moves Higher As ISM Manufacturing PMI Beats Estimates

SP500 gains ground as traders focus on the stronger-than-expected ISM Manufacturing PMI report and react to the pullback in the oil markets.

ISM Manufacturing PMI increased from 53.3 in June to 55.6 in July, compared to analyst forecast of 54. Numbers above 50 show expansion. The report indicated that manufacturing sector expanded at a robust pace, providing support to SP500.

WTI oil pulled back by -5% as President Trump called off strikes against Iran. According to recent reports, Iran and Oman are talking about boosting traffic in the Strait of Hormuz.

Treasury yields moved lower as bond traders focused on the pullback in the oil markets. The yield of 2-year Treasuries declined towards the 4.25% level, while the yield of 10-year Treasuries pulled back below 4.70%. Falling Treasury yields provided additional support to stocks.

Consumer cylclical and industrials stocks were among the biggest gainers in the SP500 index today. Energy stocks moved lower as traders focused on the sell-off in the oil markets.

SP500 settled above the previous resistance at 7565 – 7575 and climbed towards the next resistance level at 7615 – 7625. In case SP500 manages to settle above the 7625 level, it will gain additional upside momentum and head towaards the 7700 level. Traders should note that RSI has recently moved into overbought territory, so the risks of a pullback are increasing.

On the support side, a move below the 7600 level will push SP500 towards the support level at 7565 – 7575.

NASDAQ Tests Resistance At 28,800 – 28,850

NASDAQ rallied amid strong demand for tech stocks. Meta, which was up by +6.5%, was among the biggest gainers in the NASDAQ index today. The stock conitnued to rebound after the strong sell-off, which was triggered by the disappointing earnings report.

From a big picture point of view, traders are ready to shrug off worries about high AI spending. Microsoft and Alphabet were also among the best performers in in the index.

Currently, NASDAQ is trying to settle above the resistance level at 28,800 – 28,850. In case NASDAQ manages to settle above the 28,850 level, it will head towards the next resistance level at 29,200 – 29,250. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in the near term.

Dow Jones Tests New Highs As Rally Continues

Dow Jones gained upside momentum amid broad rally in the equity markets. Boeing, which was up by +7.6%, was the biggest gainer in the Dow Jones index today. The stock rallied as FAA certified Boeing’s new 737 Max 7 jetliner. The certification was made after years of delays.

Dow Jones moved above the 53,000 level and is trying to settle above 53,200. In case this attempt is successful, Dow Jones will get to the test of the resistance level at 53,300 – 53,400. A move above the 53,400 level will push Dow Jones towards the 54,000 level.

On the support side, a move below the 53,000 level will push Dow Jones back towards the nearest support level, which is located in the 52,700 – 52,800 range.

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