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NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests Resistance At 18,700 Amid Rising Demand For Tech Stocks

By:
Vladimir Zernov
Updated: May 20, 2024, 20:34 GMT+00:00

Key Points:

  • SP500 made an attempt to settle above the resistance at 5320 - 5330 as traders remained bullish amid lack of catalysts.
  • NASDAQ gained ground as demand for tech stocks increased.
  • Dow Jones pulled back below the 39,900 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 200524 4h Chart

SP500 is trying to settle above the resistance at 5320 – 5330 amid lack of catalysts. There are no important economic reports scheduled to be released in the U.S. today, so traders are focused on general market sentiment. Treasury yields are moving higher, but this move does not put any material pressure on stocks. Traders have also ignored the significant geopolitical development. Iranian President Raisi died in helicopter crash this weekend. However, markets believe that his death would not lead to another round of escalation in the Middle East. Tech stocks are among the leaders in SP500 today, while financial and consumer defensive stocks have found themselves under pressure.

In case SP500 manages to settle above the 5330 level, it will gain additional upside momentum and move towards new highs. On the support side, a move below the 5300 level will push SP500 towards the support at 5270 – 5280.

NASDAQ

NASDAQ
NASDAQ 200524 4h Chart

NASDAQ tests resistance at 18,600 – 18,700 amid rising demand for tech stocks. Micron and NVIDIA are among the biggest gainers in the NASDAQ index today as traders stay focused on the potential of AI technology.

If NASDAQ manages to settle above the 18,700 level, it will head towards the 19,000 level. RSI is in the overbought territory, but there is some room to gain additional upside momentum.

Dow Jones

Dow Jones
Dow Jones 200524 4h Chart

Dow Jones is losing ground due to the strong pullback in JPMorgan stock. Investors are worried that JPMorgan’s CEO Jamie Dimon may retire soon.

From the technical point of view, Dow Jones did not manage to settle above the resistance at 39,900 – 40,000. If Dow Jones stays below the 39,900 level, it will head towards the 50 MA at 39,622. A move below the 50 MA will open the way to the test of the support at 39,000 – 39,100.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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