NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds From Session Lows As Traders Rush To Buy The Dip

SP500 Moves Higher As Oil Prices Fall

SP500 gains ground as traders react to the strong pullback in the oil markets. WTI oil is down by -3% as Israel and Lebanon agreed to a ceasefire deal. The situation is complicated as Israel is fighting against Hezbollah, a militant group which is not controlled by the official government of Lebanon. Hezbollah rejected the deal, but Israel – Hezbollah fighting was reduced compared to previous days.

Treasury yields moved lower as traders focused on recent developments in the Middle East. The yield of 2-year Treasuries pulled back below the 4.05% level, while the yield of 10-year Treasuries settled near 4.47%. Falling Treasury yields provided additional support to stocks.

Today, traders also focused on the Initial Jobless Claims report. The report indicated that 225,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 213,000. The higher-than-expected report provided support to SP500 as maximum employment is part of Fed’s dual mandate.

Most market sectors moved higher in today’s trading session. Healthcare and financial stocks gained strong upside momentum. Tech stocks were among the losers as traders continued to take profits near historic highs.

SP500 failed to settle below the support at 7515 – 7525 and rebounded towards the resistance at 7590 – 7600. In case SP500 manages to settle above the 7600 level, it will head towards historic highs near the 7625 level. A move above 7625 will open the way to the test of the 7650 level.

NASDAQ Rebounds On Dip-Buying

NASDAQ rebounded from session lows as traders used the pullback as an opportunity to buy stocks.

Traders have mostly ignored the sell-off in Broadcom stock, which is down by -12.7%. Broadcom suffered a sell-off as the company said that its AI chip revenue will reach $16 billion in the fiscal third quarter. Analysts expected that the company would guide for revenue of $17.2 billion.

Currently, NASDAQ is trying to settle back above the 30,500 level. In case this attempt is successful, NASDAQ will head towards the resistance level at 30,800 – 30,850. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. It should be noted that the upside trend remains strong, and traders are quickly buying all pullbacks.

Dow Jones Tests Historic Highs

Dow Jones tested new highs as traders focused on the sell-off in the oil markets. Unitedhealth Group, which was up by 5.8%, was the biggest gainer in the Dow Jones index today. The stock rallied as BofA Securities upgraded the shares to Buy from Neutral with a target price of $450.

From the technical point of view, Dow Jones settled above the resistance at 51,000 – 51,100 and is moving towards the 51,700 level. In case Dow Jones climbs above 51,700, it will head towards the 52,000 level. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

On the support side, a move below the 50 MA at 50,881 will push Dow Jones towards the support level at 50,400 – 50,500.

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