NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Tesla Soars 7.6%

SP500 Tests Historic Highs

SP500 climbed above the 7000 level amid rising demand for tech and financial stocks. Morgan Stanley, which was up by 4.7%, was among the biggest gainers in the index today. The stock rallied as traders reacted to the strong earnings report. Bank of America has also moved higher after the release of the better-than-expected report.

Traders also focused on geopolitical news. According to recent reports, U.S. and Iran may extend ceasefire for two weeks to provide additional time for negotiations. Oil prices moved lower as traders reacted to these reports. WTI oil declined below the $91.00 level, while Brent oil settled below $95.00.

Today, traders had a chance to take a look at the NAHB Housing Market Index report. The report showed that NAHB Housing Market Index decreased from 38 in March to 34 in April, compared to analyst forecast of 37.

Current sales conditions fell from 41 in March to 37 in April. Sales expectations in the next six months decreased from 49 to 42, while traffic of prospective buyers declined from 25 to 22. NAHB noted that elevated interest rates and growing economic uncertainty put pressure on home buyers.

Consumer cyclical, technology, and financial stocks were among the biggest gainers in the SP500 index today. Industrials, basic materials and utilities stocks have found themselves under pressure.

SP500 settled above the previous resistance at 6960 – 6970 and is trying to settle above the resistance level at 7010 – 7020. In case this attempt is successful, SP500 will move towards the 7050 level. It should be noted that RSI is in the extremely overbought territory, so the risks of a pullback are rising.

NASDAQ Soars As Rally Continues

NASDAQ rallied amid strong demand for tech stocks. Tesla, which was up by 7.6%, was among the best performers in the NASDAQ index today. The stock rallied as Elon Musk announced an AI chip milestone.

Interestingly, software stocks have also managed to gain strong momentum in today’s trading session. The market is extremely bullish, and some traders are ready to bet that business of software companies will survive despite AI threats.

Currently, NASDAQ attempts to settle above the resistance level at 26,200 – 26,250. A move above the 26,250 level will push NASDAQ towards the 26,500 level. On the support side, a move below 26,000 will open the way to the test of the nearest support, which is located in the 25,750 – 25,800 range.

Dow Jones Tests Support At 48,200 – 48,300

Dow Jones pulled back as demand for industrials and healthcare stocks declined. Caterpillar, which was down by 3.3%, was the biggest loser in the Dow Jones index today.

The nearest support level for Dow Jones index is located in the 48,200 – 48,300 range. If Dow Jones declines below the 48,200 level, it will head towards the 50 MA at 47,631. A move below the 50 MA will push Dow Jones towards the support at 47,400 – 47,500.

On the upside, Dow Jones needs to settle above the 48,600 level to have a chance to gain sustainable upside momentum in the near term. In case Dow Jones climbs above 48,600, it will move toward the resistance level at 49,000 – 49,100. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

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