NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds As Palantir Gains 6.5%

SP500 Rebounds As Traders Buy The Dip

SP500 rebounded from session lows as traders ignored the risks posed by U.S. military operation against Iran.

Not surprisingly, oil prices rallied as traders reacted to the situation in the Middle East. WTI oil settled near the $71.00 level, while Brent oil climbed above $77.00. it should be noted that oil prices pulled back from session highs despite the de-facto closure of the Strait of Hormuz and several attacks on oil assets in the region.

Treasury yields rallied as traders sold Treasuries in response to U.S. operation in Iran. Interestingly, U.S. dollar gained ground against a broad basket of currencies.

President Trump has recently said that the operation could last for 4-5 weeks and that U.S. was prepared to increase pressure on Iran. In turn, Iran also signaled that it was ready for a long battle.

However, stock traders are not worried about a long conflict in the Middle East which could keep oil prices at high levels and force the Fed to be more hawkish.

Today, traders also had a chance to take a look at the ISM Manufacturing PMI report for February. The report indicated that ISM Manufacturing PMI declined from 52.6 in January to 52.4 in February, compared to analyst forecast of 51.8. Numbers above 50 show expansion.

Energy stocks were among the biggest gainers in the SP500 index today as traders reacted to the strong rally in the oil markets. Natural gas markets have also moved higher as Iran attacked a major LNG export plant in Qatar.

Consumer cyclical and consumer defensive stocks were among the biggest losers today.

Currently, SP500 is trying to settle back above the resistance at 6870 – 6880. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6940 – 6950 range.

NASDAQ Gains Ground Amid Strong Demand For Tech Stocks

NASDAQ has also moved higher as traders used the pullback as an opportunity to increase long positions at attractive levels.

Palantir, which was up by 6.5%, was among the biggest gainers in the NASDAQ index today. The stock rallied due to the company’s role in the U.S. defense sector.

Strategy, which gained 5.8%, also managed to gain strong momentum. The stock moved higher as Bitcoin climbed towards the $69,000 level.

NASDAQ is trying to settle above the 50 MA at 24,937. In case NASDAQ settles above the 50 MA, it will head towards the nearest resistance level at 25,200 – 25,250. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Moves Higher As NVIDIA Gains 3%

Dow Jones has also moved away from session lows as traders bought the dip. NVIDIA, which was up by 3%, was the biggest gainer in the Dow Jones index today.

It should be noted that most stocks in the Dow Jones index moved lower in today’s trading session, but rising demand for tech stocks provided sufficient support to the index.

If Dow Jones settles above the support at 48,700 – 48,800, it will head towards the 50 MA at 49,210. A move above the 50 MA will open the way to the test of the nearest resistance level, which is located in the 49,500 – 49,600 range.

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