NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Soars As Traders Buy The Dip

SP500 Soars As Traders Buy The Dip

SP500 rallies as traders rush to buy tech stocks and focus on the strong pullback in the oil markets.

WTI oil is down by more than -3% as President Trump said that it was “highly unlikely” that he would order strikes against Iran. Oil traders believe that U.S. and Iran are moving towards a comprehensive deal. The market mood is bearish, and traders have ignored Houthis’ attacks against Saudi Arabia over the weekend.

Stock traders ignored major problems at NVIDIA, which is down by -5.8%. NVIDIA’s CEO Jensen Huang confirmed that he had an affair with Alice Huang, an executive at Megaspeed, which has become one of the biggest buyers of NVIDIA’s AI chips in Asia. According to recent reports, Alice Huang was recruited to be a Chinese spy to collect information about Jensen Huang and NVIDIA.

Treasury yields moved higher as demand for safe-haven assets declined amid falling oil prices. The yield of 2-year Treasuries moved above the 4.56% level, while the yield of 10-year Treasuries climbed above 4.87%. Rising Treasury yields did not put any pressure on the SP500 index today.

Industrials and basic materials stocks were among the biggest gainers in the SP500 index today. Tech stocks have also managed to gain strong upside momentum. The rally was broad, and all market sectors moved higher in today’s trading session.

Currently, SP500 is trying to settle above the resistance at 7550 – 7560. In case this attempt is successful, SP500 will head towards the 50 MA at 7580. A move above the 50 MA will open the way to the test of the resistance at 7620 – 7630.

NASDAQ Rallies As Traders Ignore NVIDIA’s Problems

NASDAQ rallied as traders rushed to buy the dip in tech stocks despite the sell-off in NVIDIA stock. It looks that Iran deal hopes served as a catalyst that triggered the rally.

Technical factors were also in play as NASDAQ failed to settle below the support level at 27,100 – 27,150. Short-sellers started to close their positions, while speculative buyers bet on a rebound.

The nearest resistance level for NASDAQ is located in the 27,950 – 28,000 range. In case NASDAQ manages to settle above the 28,000 level, it will head towards the 50 MA at 28,199. A move above 28,199 will push NASDAQ towards the resistance level at 28,800 – 28,850.

Dow Jones Tests Resistance At 52,300 – 52,400

Dow Jones gained strong upside momentum despite the sell-off in NVIDIA stock. Caterpillar, which was up by +6.5%, was the biggest gainer in the Dow Jones index today. The stock rallied as Anthropic decided to buy $3.4 billion worth of natural gas power turbines from the company.

Dow Jones climbed above the 50 MA at 52,134 and is trying to settle above the resistance at 52,300 – 52,400. If Dow Jones manages to settle above 52,400, it will head towards the next resistance at 52,800 – 52,900. On the support side, a move below the 50 MA at 52,134 will push Dow Jones towards the nearest support level, which is located in the 51,400 – 51,500 range.

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