NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tested 7000 As Traders Waited For Fed Decision

SP500

SP500 made an attempt to settle above the psychologically important 7000 level as traders waited for Fed Interest Rate Decision. Analysts expect that Fed will leave rates unchanged, so traders will mostly focus on Powell’s comments. The key question is whether Powell signals that Fed is ready to keep rates unchanged until the end of his term amid pressure from President Trump. Basic materials stocks were among the biggest gainers today as gold prices tested historic highs. Energy stocks have also managed to gain some ground as oil markets moved higher. It should be noted that most market sectors pulled back as traders were cautious ahead of Fed decision.

From the technical point of view, SP500 made an attempt to settle above the resistance at 6990 – 7000 but lost momentum and pulled back. In case SP500 declines below the 6970 level, it will head towards the nearest support, which is located in the 6940 – 6950 range.

NASDAQ

NASDAQ has also pulled back from session highs as traders waited for key earnings reports. Meta, Microsoft, and Tesla will release their quarterly reports today, after market close. These reports may have a major impact on market dynamics, so traders should be prepared for volatility.

In case NASDAQ pulls back below the 26,000 level, it will move towards the nearest support at 25,800 – 25,850. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones was swinging between gains and losses ahead of Fed decision. Unitedhealth Group, which was up by 4.1%, was the biggest gainer in the Dow Jones index today. The stock has started to rebound after major sell-off.

If Dow Jones manages to settle back above the 20 MA at 49,041, it will move towards the resistance at 49,500 – 49,600.

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