NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies On De-Escalation In The Middle East

SP500 Moves Higher As Traders Focus On Recent Developments In The Middle East

SP500 gains ground as traders react to news from the Middle East and focus on rising demand for tech stocks.

U.S. and Iran agreed to halt attacks against each other after a violent weekend. According to President Trump, Iran has requested a meeting, which will be held in Doha, Qatar.

Oil prices gained some ground as traders reacted to tensions in the Middle East, but traders do not believe that Iran would close the Strait of Hormuz again.

Today, traders also had a chance to take a look at the Dallas Fed Manufacturing Index report. The report showed that Dallas Fed Manufacturing Index decreased from 0.4 in May to 0 in June, compared to analyst forecast of 2.

Consumer cyclical and tech stocks were among the biggest gainers today. Basic materials stocks have found themselves under pressure as traders reacted to the pullback in precious metals markets. Real estate stocks have also moved lower as traders focused on rising Treasury yields.

Currently, SP500 is trying to settle above the resistance at 7450 – 7460. In case this attempt is successful, SP500 will move towards the next resistance level at 7540 – 7550. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

On the support side, a move below the 50 MA at 7443 will push SP500 back towards the support level at 7370 – 7380.

NASDAQ Tests Resistance At 29,800 – 29,850

NASDAQ rallied amid strong demand for tech stocks. Strategy, which is up by 12.7%, is among the biggest gainers in the NASDAQ index today. The stock rallied as Bitcoin climbed back above the psychologically important $60,000 level.

Western Digital  gained 11% as traders rushed to buy the stock after the strong pullback from historic highs.

NASDAQ settled above the support at 29,350 – 29,400 and moved towards the resistance level at 29,800 – 29,850. If NASDAQ manages to settle above the 29,850 level, it will head towards the next resistance, which is located in the 30,200 – 30,250 range.

On the support side, NASDAQ needs to settle back below the 29,600 level to gain downside momentum in the near term. In this case, NASDAQ will head towards the support at 29,350 – 29,400.

Dow Jones Tests The 52,200 Level As Amazon Gains 3.2%

Dow Jones continues its attempts to settle above the resistance level at 52,100 – 52,200 amid broad rally in the equity markets. Amazon, which is up by +3.2%, is the biggest gainer in the Dow Jones index today. The company’s shares gained strong upside momentum amid rising demand for tech stocks.

If Dow Jones manages to settle above the 52,200 level, it will head towards recent highs near the 52,700 level. A move above 52,700 will open the way to the test of the 53,000 level.

On the support side, the nearest support level for Dow Jones is located in the 51,600 – 51,700 range. A move below the 51,600 level will push Dow Jones towards the next support at 51,000 – 51,100.

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