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NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests 5100 As Rally Continues

By:
Vladimir Zernov
Published: Feb 23, 2024, 19:17 UTC

Key Points:

  • SP500 made an attempt to settle above the 5100 level.
  • NASDAQ continued its attempts to settle above the resistance at 18,000 - 18,050.
  • Dow Jones settled above the 39,000 level.
NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

SP500

SP500
SP500 230224 4h Chart

SP500 tested new highs as the rally continued. There are no important economic reports scheduled to be released today, so traders focused on general market sentiment, which remained bullish. Interestingly, profit-taking did not put any material pressure on SP500 today. Traders are afraid to miss a major move after the strong rally. Most sectors moved higher in today’s trading session, but energy stocks found themselves under pressure due to pullback in the oil and natural gas markets. Treasury yields moved away from their recent highs, providing additional support to major indices.

RSI remains in the extremely overbougth territory but SP500 is moving higher as traders stay bullish. The absence of profit-taking is a sign indicating that the FOMO trade stays strong. Traders are so worried about missing the next big move that they do not want to take profits off the table at historic highs.

NASDAQ

NASDAQ
NASDAQ 230224 4h Chart

NASDAQ is trying to settle above the key resistance at 18,000 – 18,050. NVIDIA tested new highs today as traders continued to buy the stock after the recent earnings report. AI hype will remain the key driver for the tech-heavy NASDAQ in the upcoming weeks.

Profit-taking is the key risk for the NASDAQ index. However, NASDAQ is not overbought, so there is plenty of room to gain additional upside momentum in the near term.

Dow Jones

Dow Jones
Dow Jones 230224 4h Chart

Dow Jones gained some ground as the majority of the index components moved higher. Apple, which was down by 0.9%, was the worst performer in the Dow Jones index today. Apple remains under some pressure as traders prefer semiconductor stocks and worry about the company’s sales in China.

In case Dow Jones manages to stay above the 39,000 level, it will move towards the psychologically important 40,000 level.

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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