NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds As Apple Gains 3.9%

SP500 Rebounds As Traders Buy The Dip

SP500 rebounded from session lows and moved higher as traders reacted to economic reports.

NAHB Housing Market Index declined from 37 in January to 36 in February, compared to analyst forecast of 38. According to the report, current sales conditions were unchanged at 41.

Sales expectations in the next six months declined from 49 to 46, while traffic of prospective buyers decreased from 24 to 22.

The National Association of Home Builders commented: “Builders reduced their expectations for future sales as buyers report affordability challenges, which is contributing to declining consumer confidence for the overall economy.”

NAHB noted that 36% of builders cut prices on February, while the average price reduction remained unchanged at 6%.

Today, traders also had a chance to take a look at the NY Empire State Manufacturing Index report. The report showed that NY Empire State Manufacturing Index decreased from 7.70 in January to 7.10 in February, compared to analyst forecast of 7.

NY Empire State Manufacturing Index report indicated that firms “grew more optimistic that conditions would improve in the months ahead […]”

Financial and industrials stocks were among the biggest gainers today. Basic materials stocks have found themselves under pressure as traders reacted to the strong pullback in precious metals markets.

Energy stocks have also moved lower amid progress in U.S. – Iran talks, which put pressure on oil prices. Natural gas prices have also declined as traders reacted to bearish weather forecasts, putting additional pressure on energy stocks.

The nearest resistance level for SP500 is located in the 6870 – 6880 range. In case SP500 manages to settle above this level, it will move towards the next resistance at 6940 – 6950. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Tests Resistance At 24,700 – 24,750

NASDAQ has also moved away from session lows as traders rushed to buy the dip.

Apple, which is up by 3.9%, is among the best performers in the NASDAQ index today. The company has limited its investments in AI, so it’s not surprising to see that traders used the recent pullback as an opportunity to increase their long positions at attractive levels.

From a big picture point of view, traders remain worried about the impact of AI-related expenses on big tech’s financials. Traders also fear that AI will destroy the business of software companies.

Currently, NASDAQ is trying to settle above the resistance at 24,700 – 24,750. In case this attempt is successful, NASDAQ will head towards the 50 MA at 24,932. A move above the 50 MA will push NASDAQ towards the next resistance at 25,200 – 25,250.

Dow Jones Moves Higher Amid Rising Demand For Financial Stocks

Dow Jones gained some ground amid broad rebound in the equity markets. American Express and Visa were among the biggest gainers in the Dow Jones index today. The shares moved higher amid rising demand for financial stocks.

Dow Jones found support near the 49,200 level and is trying to settle above the resistance at 49,500 – 49,600. If Dow Jones manages to settle above 49,600, it will get to the test of the 50 MA at 49,751.

In case Dow Jones climbs above the 50 MA, it will gain additional upside momentum and head towards the next resistance level, which is located in the 50,100 – 50,200 range.

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