NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher But Traders Stay Cautious Amid Geopolitical Uncertainty

SP500 Moved Higher As Traders Focused On U.S. – Iran Negotiations

SP500 gained ground but moved away from session highs as traders focused on developments in the Middle East.

Iran has rejected the 15-point plan that could have led to a ceasefire. In turn, Iran presented its own proposals, which included compensations from U.S. and Israel. Obviously, such proposals would not lead to any deal.

That said, U.S. insists that current negotiations are productive. Iran denies that talks are ongoing and says that a couple of messages are not equal to negotiations.

Oil traders do not believe that U.S. and Iran will reach a deal in the near term. WTI oil climbed towards the $91.00 level, while Brent oil settled above $102.00. Interestingly, rising oil prices did not put pressure on stocks.

All market sectors gained ground in today’s trading session. Basic materials stocks were among the biggest gainers as traders focused on rising precious metals markets. Healthcare and consumer cyclical stocks have also gained strong upside momentum.

Energy stocks were mostly flat despite the rally in the oil markets. Traders are worried that high oil prices will put too much pressure on global economy and reduce demand for energy.

SP500 has recently made several attempts to settle above the 50 MA at 6631 but failed to develop sufficient upside momentum and pulled back. The nearest support level for SP500 is lcoated in the 6580 – 6590 range.

A move below the 6580 level will push SP500 towards the next support at 6510 – 6520. In case SP500 climbs above the 50 MA at 6631, it will head towards the resistance at 6690 – 6700.

NASDAQ Tested Resistance At 24,350 – 24,400

NASDAQ has also moved away from session highs as traders took some profits off the table amid geopolitical uncertainty.

It should be noted that software stocks have remained under pressure today. Traders are worried that AI will destroy the business of software companies and continue to sell their shares. The recent attempt to rebound was met with strong selling. At this point, software stocks need major positive catalysts to have a chance to break the current trend.

In case NASDAQ declines below the 24,100 level, it will get to the test of the support level at 23,950 – 24,000.

On the upside, a successful test of the resistance at 24,350 – 24,400 will push NASDAQ towards the next resistance level at 24,750 – 24,800.

Dow Jones Made An Attempt To Climb Above The 46,700 Level

Dow Jones continued its attempts to settle above the resistance level at 46,300 – 46,400. Rising demand for healthcare and industrials stocks provided support to the Dow Jones index in today’s trading session.

If Dow Jones manages to settle above the 46,400 level, it will move towards the resistance level, which is located in the 47,100 – 47,200 range. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, Dow Jones needs to settle below the 46,200 level to have a chance to gain downside momentum in the near term. In this case, Dow Jones will move towards the support level at 45,700 – 45,800.

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