NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Traders Shrug Off Trade War Risks

SP500

SP500 rebounds after Friday’s sell-off as traders buy the dip. From a big picture point of view, traders bet that the U.S. and China will be able to reach a deal and avoid another round of a trade war. Put simply, traders believe that 100% tariffs are not sustainable in the long run, so U.S. and China will have to find common ground as both economies could not afford a full-blown trade war. Recent comments from U.S. officials, which were softer than Trump’s original post about potential tariffs, provided additional support to SP500. The rally is broad, and most market sectors gained ground in today’s trading session. Basic materials stocks were among the biggest gainers in the SP500 index today as gold and silver tested historic highs. Consumer defensive stocks found themselves under pressure as demand for safe-haven assets declined.

In case SP500 settles above the 6675 level, it will head towards the nearest resistance, which is located in the 6700 – 6710 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

NASDAQ

NASDAQ rallied as traders rushed to buy tech stocks after the strong pullback, which was driven by trade war fears.

Currently, NASDAQ is trying to settle above the resistance at 24,750 – 24,800. In case this attempt is successful, NASDAQ will head towards the next resistance level at 25,150 – 25,200.

Dow Jones

Dow Jones moved higher amid broad rally in the equity markets. Nike, which was up by 3.4%, was the biggest gainer in the Dow Jones index today.

In case Dow Jones settles above the resistance at 46,100 – 46,200, it will head towards the 50 MA at 46,464. A move above the 50 MA will open the way to the test of the next resistance at 46,900 – 47,000.

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