NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs Amid Strong Demand For Tech Stocks

SP500 Tests New Highs

SP500 gains ground as traders react to ISM Manufacturing Index report. The report indicated that ISM Manufacturing Index remained unchanged at 52.7 in April, while analysts expected that it would increase to 53. Numbers above 50 show expansion. The New Orders Index grew from 53.5 in March to 54.1 in April, while the Prices Index increased from 78.3 to 84.6.

President Trump said that he was not satisfied with Iran’s latest proposal, but oil prices moved lower. WTI oil pulled back towards the $102.00 level, while Brent oil declined towards the $108.00 level. Traders bet that U.S. and Iran will continue negotiations. Falling oil prices provided additional support to SP500 today.

Interestingly, most market sectors moved lower in today’s trading session. Technology and consumer cyclical stocks were the only gainers today. Energy stocks were among the biggest losers as traders reacted to the pullback in the oil markets. Basic materials stocks have also moved lower despite the rally in silver markets.

SP500 managed to settle above the previous resistance at 7215 – 7225 and is trying to settle above the 7250 level. in case this attempt is successful, SP500 will get to another test of the resistance level at 7270 – 7280. A move above the 7280 level will push SP500 towards the 7300 level. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

NASDAQ Gains Ground As Traders Rush To Buy Tech Stocks

NASDAQ tests historic highs amid strong demand for tech stocks. Strategy, which is up by 7.4%, is the biggest gainer in the NASDAQ index today. The stock moved higher as Bitcoin climbed above the $78,000 level.

Software stocks were among the best performers in the NASDAQ index despite worries about AI disruption. Some traders decided to use the multi-month pullback in this sector as an opportunity to build positions at attractive levels.

Currently, NASDAQ is trying to settle above the resistance at 27,750 – 27,800. If NASDAQ climbs above the 27,800 level, it will get to the test of the 28,000 level. A move above 28,000 will push NASDAQ towards the 28,500 level.

On the support side, a move below 27,700 will open the way to the test of the nearest support, whcih is located in the 27,350 – 27,400 range.

Dow Jones Retreats From Session Highs

Dow Jones pulled back from session highs as traders rushed to take some profits off the table after the strong rally.

AMGEN, which was down by 5.2%, was the biggest loser in the Dow Jones index today. The stock pulled back as traders reacted to the company’s quarterly report.

Salesforce was the best performer in the index. The company’s shares gained 4.2% amid rising demand for software stocks.

From the technical point of view, Dow Jones made an attempt to settle above the resistance at 49,700 – 49,800 but lost momentum and pulled back towards the 49,600 level.

If Dow Jones manages to settle below 49,600, it will head towards the 50 MA at 49,254. A move below the 50 MA will push Dow Jones towards the support level at 49,000 – 49,100.

On the upside, Dow Jones needs to settle above the 49,800 level to gain upside momentum in the near term. In this case, Dow Jones will head towards the 50,500 level.

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