NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Traders Buy The Dip

SP500

SP500 gained ground as traders rushed to buy the dip after Friday’s sell-off. Traders bet that weak job market data will force the Fed to cut rates, which will be bullish for stocks. Today, traders also had a chance to take a look at the Factory Orders report for June. The report indicated that Factory Orders declined by -4.8% on a month-over-month basis, compared to analyst forecast of -4.9%. Today’s rally was broad, and most market sectors gained solid upside momentum. Energy stocks found themselves under some pressure as traders reacted to pullbacks in natural gas and oil markets.

SP500 is moving towards the nearest resistance, which is located in the 6340 – 6350 range. In case SP500 climbs above the 6350 level, it will head towards the resistance at 6430 – 6440. RSI is in the moderate terrritory, and there is plenty of room to gain additional momentum in case the right catalysts emerge.

NASDAQ

NASDAQ rallied as demand for tech stocks increased after the pullback from historic highs. Traders do not want to miss an opportunity to buy these stocks at attractive levels.

Currently, NASDAQ is trying to settle above the resistance at 23,150 – 23,200. In case this attempt is successful, NASDAQ will head towards the next resistance level at 23,450 – 23,500.

Dow Jones

Dow Jones moved higher amid broad rally in the equity markets. NVIDIA and Microsoft were the biggest gainers in the Dow Jones index today. They rallied amid strong demand for leading tech stocks.

Dow Jones has recently moved above the resistance at 43,900 – 44,000 and is trying to settle above the 44,100 level. In case this attempt is successful, Dow Jones will head towards the next resistance level, which is located in the 44,500 – 44,600 range.

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