NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Historic Highs As Rally Continues

SP500

SP500 tests new highs as traders bet on a less hawkish Fed after the release of the disappointing ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI declined from 49.1 in January to 47.8 in February, compared to analyst consensus of 49.5. Numbers below 50 show contraction. Today, traders also focused on the final reading of Michigan Consumer Sentiment report, which showed that Consumer Sentiment decreased from 79 in January to 76.9 in February. As usual, the rally was led by tech stocks. Traders stay focused on the AI theme and buy shares of almost every company that can benefit from the AI revolution.

From the technical point of view, SP500 settled above the previous resistance at 5100 – 5110 and is moving towards the 5150 level. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ tests historic highs as demand for tech stocks stays strong. While some analysts compare the current rally to the dotcom era, traders ignore the warnings and enjoy the strong trend. NVIDIA, which is the main driver behind the recent rally, is moving towards historic highs. The company’s capitalization exceeds $2 trillion, but traders believe that AI will change everything and boost NVIDIA’s profits.

The technical picture is extremely bullish as NASDAQ has recently settled above the strong resistance level at 18,000 – 18,050.

Dow Jones

Dow Jones is moving higher amid a broad rally in the equity markets. However, Dow Jones did not manage to gain strong momentum as traders were focused on tech stocks.

In case Dow Jones manages to settle above the 39,100 level, it will head towards the resistance, which is located at the recent highs at 39,250 – 39,300.

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