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

SP500 Tests New Highs

SP500 gains ground as traders focus on the pullback in the oil markets and react to economic reports.

WTI oil pulled back towards the $100 level amid signs indicating that U.S. and Iran have intensified negotiations. U.S. said that it was ready for a ceasefire in case Iran reopened the Strait of Hormuz. Iran noted that it would not reopen the strait without a ceasefire.

According to recent reports, President Trump will say that the operation in Iran will end in 2-3 weeks. He is expected to address the nation in a few hours.

ADP Employment Change report showed that private businesses added 62,000 jobs in March, exceeding the analyst consensus of 40,000. Retail Sales grew by +0.6% month-over-month in February, compared to analyst forecast of +0.5%.

Today, traders also focused on the ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI improved from 52.4 in February to 52.7 in March, compared to analyst forecast of 52.5. Numbers above 50 show expansion.

Most market sectors moved higher in today’s trading session. Basic materials stocks were among the biggest gainers as traders focused on the rally in precious metals markets.

Energy stocks found themselves under pressure as traders reacted to pullbacks in natural gas and oil markets. Consumer defensive stocks have also moved lower as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the 6600 level. In case this attempt is successful, SP500 will head towards the nearest resistance level, which is located in the 6640 – 6650 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, the nearest support level for SP500 is located in the 6550 – 6560 range. If SP500 declines below the 6560 level, it will head towards the 50 MA at 6519. A move below the 50 MA will open the way to the test of the support level at 6440 – 6450.

NASDAQ Gains Ground Amid Strong Demand For Tech Stocks

NASDAQ rallied as demand for riskier assets increased. Western Digital, which was up by 11%, was the biggest gainer in the NASDAQ index today.

Micron and Intel gained 9% amid rising demand for semiconductor stocks. Traders used the recent pullback as an opportunity to increase their long positions at attractive levels.

From the technical point of view, NASDAQ attempts to settle above the resistance level at 24,000 – 24,050. If NASDAQ manages to settle above the 24,050 level, it will move towards the next resistance level at 24,350 – 24,400.

On the support side, a move below the 24,000 level will push NASDAQ towards the 50 MA at 23,789.

Dow Jones Tests Resistance At 46,600 – 46,700

Dow Jones is trying to settle above the resistance at 46,600 – 46,700 amid broad rally in the equity markets.

The index gained ground despite the strong sell-off In Nike stock. Nike pulled back by 15% as traders reacted to the weak earnings report. Analysts rushed to downgrade the stock after the release of the report.

If Dow Jones manages to settle above the 46,700 level, it will move towards the next resistance, which is located in the 47,400 – 47,500 range. RSI is close to overbought territory, but there is enough room to gain momentum in the near term.

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