NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As WTI Oil Dives 5%

SP500 Moves Higher As Oil Markets Retreat

SP500 gained ground as traders focused on the strong pullback in the oil markets and reacted to economic reports.

WTI oil suffered a sell-off as President Trump said that Iran was willing to make a deal. As usual, Iran denied that it wanted to negotiate with the U.S.

The UAE port of Fujairah was able to restart operations after a drone strike, which was bearish for oil markets. Iran-linked vessels were able to pass through the Strait of Hormuz, but the world’s key oil route remained shut for most ships. President Trump said that ships must be willing to pass through the Strait, but it looks that most owners and crews are not ready to take risks.

IEA’s Executive Director Fatih Birol said that the organization could release more oil from reserves if necessary. High oil prices are bearish for most stocks, so SP500 is moving higher when oil markets show signs of weakness.

Today, traders had a chance to take a look at the NAHB Housing Market Index report for March. The report indicated that NAHB Housing Market Index increased from 37 in February to 38 in March, compared to analyst forecast of 37.

According to the report, current sales conditions increased from 41 in February to 42 in March. Sales expectations in the next six months grew from 47 to 49. while traffic of prospective buyers increased from 22 to 25.

NY Empire Manufacturing Index declined from 7.10 in February to -0.20 in March, compared to analyst consensus of 3.2. Industrial Production increased by +0.2% month-over-month in February, while analysts expected that it would grow by +0.1%.

The rally was broad, and all market segments moved higher in today’s trading session. Interestingly, energy stocks have also managed to gain ground despite strong pullbacks in natural gas and oil markets.

Currently, SP500 is trying to settle above the resistance at 6710 – 6720. In case this attempt is successful, SP500 will head towards the 50 MA at 6747. A move above the 50 MA will open the way to the test of the resistance at 6790 – 6800.

NASDAQ Tests Resistance At 24,700 – 24,750

NASDAQ moved higher amid strong demand for tech stocks. Strategy, which was up by 5.5%, was among the biggest gainers in the NASDAQ index today.

Strategy gained strong upside momentum as Bitcoin climbed above the $74,000 level.

From the technical point of view, NASDAQ is trying to settle above the resistance level at 24,700 – 24,750. If NASDAQ manages to settle above the 24,750 level, it will move towards the next resistance at 25,150 – 25,200. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Dow Jones Rebounds From Multi-Month Lows

Dow Jones is moving higher amid broad rally in the equity markets. Most stocks in the Dow Jones index managed to gain ground in today’s trading session.

Salesforce and Amazon were the biggest gainers in the Dow Jones index today. These shares gained upside momentum amid rising demand for tech stocks.

The nearest resistance level for Dow Jones is located in the 47,100 – 47,200 range. If Dow Jones climbs above the 47,200 level, it will head towards the 50 MA at 47,388. A move above the 50 MA will open the way to the test of the next resistance, which is located in the 48,000 – 48,100 range.

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