NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests 5000 Amid Strong Demand For Tech Stocks

Key Insights

• SP500 tests historic highs as traders rush to buy tech stocks. 
• NASDAQ also tests new highs amid a broad rally in the equity markets. 
• Dow Jones is trying to settle above the 38,700 level. 

SP500

SP500 tested historic highs as tech stocks rallied. General market sentiment remains bullish, and traders are ready for new highs. Today’s move is broad, and the majority of market segments are moving higher. Energy is the only sector that is moving lower today. Treasury yields are mostly flat as bond traders evaluate their next moves after the recent pull back in bond markets.

From the technical point of view, SP500 managed to settle above the resistance at 4960 – 4970 and made an attempt to settle above the psychologically important 5000 level. RSI has recently moved into the overbought territory. However, RSI is below the highs that were reached in January so there is enough room to gain additional upside momentum.

NASDAQ

NASDAQ gains ground as demand for tech stocks is rising. AI hype is driving demand for all kinds of stocks in the sector, which is bullish for the tech-heavy NASDAQ index.

Currently, NASDAQ is trying to settle above the resistance at 17,650 – 17,700. In case this attempt is successful, NASDAQ will get to the test of the 18,000 level. RSI is in the moderate territory, which is bullish for NASDAQ.

Dow Jones

Dow Jones is also moving higher amid a broad rally in the equity markets. Today’s move is led by Microsoft, which is up by 1.9% amid rising demand for tech stocks.

Dow Jones moved above the resistance at 38,500 – 38,550 and is heading towards the 39,000 level. The technical picture remains bullish and there is plenty of room to gain momentum as RSI is in the moderate territory.

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