NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Microsoft Soars 9%

SP500

SP500 gains ground as traders react to economic reports and companies’ quarterly reports. Initial Jobless Claims report showed that 241,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 224,000. Today, traders also had a chance to take a look at ISM Manufacturing PMI report for April. The report indicated that ISM Manufacturing PMI declined from 49 in March to 48.7 in April, compared to analyst forecast of 48. Numbers below 50 show contraction. Tech stocks are among the biggest gainers in the SP500 index today as traders react to encouraging quarterly reports. Energy stocks have also managed to gain upside momentum as traders focused on rising natural gas and oil markets.

Currently, SP500 is trying to settle above the 5650 level. In case this attempt is successful, SP500 will move towards the resistance, which is located in the 5700 – 5710 range. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ tests resistance at 19,950 – 20,000 as traders rush to buy tech stocks. Microsoft, which is up by 9%, is among the biggest gainers in the NASDAQ index today. The stock rallied as traders reacted to the strong quarterly report. The company’s performance was boosted by the cloud business growth.

If NASDAQ manages to settle above the psychologically important 20,000 level, it will head towards the next resistance level at 20,350 – 20,400.

Dow Jones

Dow Jones is trying to settle above the resistance at 40,900 – 41,000 amid broad rally in the equity markets.

A move above the 41,000 level will open the way to the test of the next resistance level at 42,000 – 42,100. RSI is in the moderate territory, and there is plenty of room to gain momentum.

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