NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds From Session Lows As Treasury Yields Drop

SP500 Attempts To Settle Back Above 7800

SP500 rebounded from session lows as traders focused on the successful auction of 10-year Treasuries and evaluated FOMC Minutes.

The yield of 10-year Treasuries tested the 5.36% level as bond sell-off continued. However, yields have already become attractive for some investors. U.S. Treasury sold $39 billion of 10-year bonds at 5.3%, which indicated that demand for U.S. bonds has started to grow.

It is too early to say that Treasuries have bottomed out, but the auction was the first positive development for the bond market in many weeks. Not surprisingly, the results of the auction provided material support to SP500.

Traders also focused on FOMC Minutes. The Minutes showed that Fed members expected another rate hike by the end of the year. There were no surprises in the Minutes, which was bullish for SP500.

Oil prices moved lower as traders reacted to the EIA report. The pullback was not strong and did not have a material impact on stock market dynamics in today’s trading session.

Healthcare and consumer defensive stocks were among the biggest gainers as demand for safe-haven assets increased. Basic materials stocks pulled back as traders focused on the sell-off in precious metals markets. Industrials stocks have also found themselves under material pressure.

Currently, SP500 is trying to settle back above the resistance level at 7815 – 7825. If SP500 manages to settle above the 7825 level, it will head towards recent highs near the 7850 level. A move above 7850 will open the way to the test of the 7900 level.

On the support side, a move below 7770 will push SP500 towards the nearest support, which is located in the 7720 – 7730 range.

NASDAQ Rebounds From Session Lows

NASDAQ has also moved away from session lows as traders have started to buy the dip. Micron, which was up by +3.5%, was the biggest gainer in the NASDAQ index today. Strategy declined by -6.5% as Bitcoin pulled back from multi-month highs.

In case NASDAQ settles above the 31,200 level, it will head towards the nearest resistance level, which is located in the 31,350 – 31,400 range. A move above the 31,400 level will push NASDAQ towards the 32,000 level.

On the support side, NASDAQ needs to settle below the 31,000 level to have a chance to gain downside momentum in the near term. In this case, NASDAQ will head towards the support level at 30,750 – 30,800.

Dow Jones Tests Support At 51,100 – 51,200

Dow Jones pulled back amid falling demand for industrials stocks. Caterpillar, which was down by -6%, was the biggest loser in the Dow Jones index today. The stock pulled back as FTC and USDA opened an inquiry into company’s business practices in the agricultural equipment market.

From the technical point of view, Dow Jones attempts to settle below the support level at 51,100 – 51,200. If Dow Jones manages to settle below the 51,100 level, it will head towards the next support level, which is located in the 50,400 – 50,500 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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