NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Record Highs

SP500

SP500 tests historic highs as traders react to U.S. economic data and bet on dovish Fed. The GDP Growth Rate report indicated that first-quarter GDP Growth Rate was -0.5%, compared to analyst consensus of -0.2%. The weaker-than-expected report provided support to SP500 as traders bet that Fed will be forced to cut rates to boost economy. In addition, business press reports indicated that U.S. President Donald Trump planned to choose Fed Chair Powell’s successor by September of October. Traders believe that Powell’s successor would be more dovish, which is bullish for stocks. Today, traders also had a chance to take a look at Durable Goods Orders report for May. The report showed that Durable Goods Orders increased by +16.4% on a month-over-month basis, compared to analyst forecast of +8.5%. Initial Jobless Claims report indicated that 236,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 245,000. Pending Home Sales increased by +1.8% month-over-month in May, while analysts expected that they would decline by -0.3%. From a big picture point of view, traders focused on dovish outlook for interest rates and ignored everything else.

In case SP500 manages to settle above the 6150 level, it will head towards new highs near the 6200 level.

NASDAQ

NASDAQ also tests historic highs as demand for tech stocks remains strong. RSI is in the overbought territory, but there is enough room to gain additional upside momentum in the near term.

From the technical point of view, NASDAQ climbed above the resistance at 22,250 – 22,300 and is heading towards the 22,500 level.

Dow Jones

Dow Jones is trying to settle above the resistance level at 43,300 – 43,400 amid broad rally in the equity markets.

In case this attempt is successful, Dow Jones will head towards the next resistance, which is located in the 43,900 – 44,000 range.

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