NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And Dow Jones Test New Highs

SP500

SP500 tested new highs as traders reacted to PMI data. Manufacturing PMI increased from 52.2 in February to 52.5 in March, compared to analyst consensus of 51.7. Numbers above 50 show expansion. Services PMI declined from 52.3 to 51.7, while Composite PMI decreased from 52.5 to 52.2. Both reports exceeded analyst expectations. Traders are not worried about Fed policy outlook and focus on the strength of the U.S. economy. In addition, it is obvious that Fed will start cutting rates some time this year, which will provide additional support to major indices.

From the technical point of view, SP500 settled above the previous resistance at 5180 – 5190 and is moving towards the 5300 level. RSI is in the overbought territory, but there is enough room to gain additional upside momentum.

NASDAQ

NASDAQ is trying to settle above the key resistance at 18,350 – 18,400. Interestingly, Apple and Tesla are among the biggest losers in the NASDAQ index today. The weak performance of these mega cap stocks may serve as a material negative catalyst for NASDAQ.

If NASDAQ settles back below the 18,350 level, it may gain downside momentum and move towards the nearest support level, which is located in the 18,000 – 18,050 range.

Dow Jones

Dow Jones tests new highs amid rising demand for Industrials and Financial stocks. The strong pullback in Apple stock, which is down by 4.2%, did not put any pressure on the Dow Jones index today as it was offset by the strong rally in Goldman Sachs stock.

Dow Jones managed to settle above the resistance at 39,250 – 39,300 level and is heading towards the psychologically important 40,000 level. It should be noted that RSI has recently moved into the extremely overbought territory, so the risks of a pullback are increasing.

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