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

SP500

SP500 tests new highs as traders focus on upcoming earnings reports and react to falling Treasury yields. The yield of 2-year Treasuries pulled back below the 3.85% level, while the yield of 10-year Treasuries settled near 4.35% as bond traders bet on dovish Fed. Most market sectors gained ground in today’s trading session. Basic materials stocks were among the biggest gainers in the SP500 index today as traders focused on the strong rally in precious metals markets. Meanwhile, energy stocks found themselves under pressure as traders reacted to the sell-off in natural gas markets.

From the technical point of view, SP500 settled above the resistance at 6280 – 6290 and is heading towards the 6350 level. A move above this level will open the way to the test of the 6400 level. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ

NASDAQ attempts to settle above the resistance level at 23,150 – 23,200 as demand for tech stocks stays strong. Arm Holdings, which is up by 4.8%, is the biggest gainer in the NASDAQ index today.

If NASDAQ stays above the 23,200 level, it will head towards 23,500. It should be noted that RSI is in the overbought territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones climbed towards the nearest resistance level at 44,600 – 44,700 as Verizon   gained 4.8%. The stock rallied as the company released strong second-quarter results and raised guidance.

If Dow Jones climbs above the 44,700 level, it will head towards the resistance at 45,000 – 45,100. On the support side, a move below the 50 MA at 44,341 will open the way to the test of the support level at 43,900 – 44,000.

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