NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Micron Gains 8.3%

SP500 Tests Resistance At 7425 – 7435

SP500 tests new highs as traders ignore rising tensions in the Middle East and focus on chip stocks.

President Trump has recently said that U.S. – Iran ceasefire was on “massive life support”. He rejected Iran’s response to U.S. proposal, calling it a “piece of garbage”.

WTI oil tested the $100 level as oil traders reacted to Trump’s comments. Treasury yields moved higher as geopolitical risks increased. The yield of 2-year Treasuries climbed above the 3.94% level, while the yield of 10-year Treasuries settled above 4.40%. Rising Treasury yields did not put pressure on SP500 as traders remained focused on the potential of AI-related stocks.

Today, traders also had a chance to take a look at the Existing Home Sales report for April. The report showed that Existing Home Sales increased by +0.2% month-over-month, compared to analyst forecast of +2.1%.

Energy stocks were among the biggest gainers today as traders reacted to strong rally in the oil and natural gas markets. Basic materials stocks have also gained solid momentum as silver markets rallied 7%.

Consumer defense and healthcare stocks pulled back as demand for defensive sectors declined.

Currently, SP500 is trying to settle above the resistance at 7425 – 7435. In case this attempt is successful, SP500 will move towards the 7500 level. RSI has recently pulled back into the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

On the support side, a move below the 7400 level will open the way to the test of the support at 7350 – 7360.

NASDAQ Tests Historic Highs

NASDAQ tests new highs amid strong demand for AI-related stocks. Micron, which was up by +8.3%, was the biggest gainer in the NASDAQ index today. The stock tested historic highs after Deutsche Bank raised its price target to $1000. Traders bet that AI-driven demand for memory will continue to grow at a robust pace.

NASDAQ attempts to settle above the resistance at 29,200 – 29,250. In case this attempt is successful, NASDAQ will get to the test of the 29,500 level. A move above 29,500 will push NASDAQ towards the psychologically important 30,000 level. RSI is in the extremely overbought territory, so the risks of a pullback are increasing.

Dow Jones Moves Away From Session Highs As Demand For Defensive Sectors Declines

Dow Jones was mostly flat as demand for safe-haven sectors declined. Nike, which was down by -3.6%, was the worst performer in the Dow Jones index today.

The stock pulled back amid worries about the company’s performance. The recent marathon record, which was made in Adidas shoes, continues to put pressure on the company’s shares. From a big picture point of view, traders are worried that Nike could lose its market share to competitors.

From the technical point of view, Dow Jones has recently made another attempt to settle above the resistance at 49,700 – 49,800 but lost momentum and pulled back.

If Dow Jones declines below the 50 MA at 49,463, it will head towards the nearest support at 49,000 – 49,100. A successful test of the support at 49,000 – 49,100 will open the way to the test of the next support level at 48,200 – 48,300.

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