NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Oil Dives After Trump’s Comments On Iran

SP500 Gains Ground As Traders Focus On The Sell-Off In The Oil Markets

SP500 rallied as President Trump said that U.S. was negotiating with Iran. Trump delayed strikes on Iranian energy infrastructure for five days as he believed that these negotiations could lead to a deal.

Oil prices dived as traders reacted to the news. WTI oil pulled back towards the $88.00 level, while Brent oil declined below the $100 level. The strong pullback in the oil markets provided significant support to major indices today.

It should be noted that Iran denied that it was negotiating with the U.S. However, the market does not believe in Iran’s comments on the issue.

Today’s rally was broad, and all market sectors gained solid upside momentum. The rally was led by basic materials stocks as precious metals rebounded from session lows.

Interestingly, energy stocks have also managed to gain ground in today’s trading session despite the sell-off in the oil markets. Traders believe that high oil prices will hurt global economy, which could be bearish for energy companies in the long term.

SP500 settled back above the support level at 6580 – 6590 and is trying to settle above the 6620 level. In case this attempt is successful, SP500 will head towards the 50 MA at 6660. A move above the 50 MA will open the way to the test of the resistance level at 6690 – 6700. This resistance level has been recently tested and proved its strength.

NASDAQ Rallies As Traders Focus On U.S – Iran Talks

NASDAQ rebounded from multi-month lows as traders reacted to geopolitical developments.

The rally was broad, and most stocks in the NASDAQ index moved higher in today’s trading session.

Treasury yields pulled back as geopolitical risk premium declined, providing additional support to NASDAQ. The yield of 2-year Treasuries declined below the 3.85% level, while the yield of 10-year Treasuries pulled back below 4.35%.

The nearest resistance level for NASDAQ is located in the 24,350 – 24,400 range. If NASDAQ manages to settle above the 24,400 level, it will move towards the 50 MA at 24,515. In case NASDAQ climbs above the 50 MA, it will head towards the next resistance level at 24,750 – 24,800.

Dow Jones Tests Resistance At 46,300 – 46,400

Dow Jones gained strong upside momentum amid broad rally in the equity markets, which was driven by falling geopolitical premium.

Unitedhealth Group, Disney, and Procter & Gamble were the only losers in the Dow Jones index today.

3M, which was up by 4%, was the biggest gainer in the index. The stock rallied as traders rushed to buy 3M shares after the strong pullback from February lows.

From a big picture point of view, traders were ready to buy the dip, and Trump’s comments ignited the rally. In the near term, geopolitical news will remain the key driver for stocks as they will determine the dynamics of oil markets.

From the technical point of view, Dow Jones attempts to settle above the resistance level at 46,300 – 46,400. If Dow Jones manages to settle above the 46,400 level, it will move towards the next resistance at 47,100 – 47,200.

On the support side, a move below the 46,300 level will push Dow Jones towards the support at 45,700 – 45,800. If Dow Jones declines below the 45,700 level, it will move towards recent lows near the 45,200 level.

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