NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally On Strong Consumer Confidence Data

SP500

SP500 gains ground as traders react to Trump’s decision to delay 50% tariffs on the EU and focus on economic reports. CB Consumer Confidence increased from 85.7 in April to 98.0 in May, exceeding the analyst consensus of 87. Rising Consumer Confidence provided material support to SP500 in today’s trading session. Durable Goods Orders declined by -6.3% month-over-month in April, compared to analyst forecast of -7.8%. Case-Shiller Home Price Index increased by 4.1% year-over-year in March, while analysts expected that it would grow by 4.5%. Today’s rally was broad, and all market sectors moved higher. Not surprisingly, the rally was led by tech stocks, which are sensitive to changes in the appetite for risk.

Currently, SP500 is trying to settle above the resistance at 5910 – 5920. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6000 – 6010 range.

NASDAQ

NASDAQ moved higher amid strong demand for tech stocks. Tesla, which was up by 5.7%, was among the biggest gainers in the NASDAQ index today.

The nearest resistance level for NASDAQ is located in the 21,450 – 21,500 range. If NASDAQ climbs above the 21,500 level, it will head towards the resistance at 21,950 – 22,000.

Dow Jones

Dow Jones gained ground amid broad rally in the equity markets. Traders bet that U.S. and EU will ultimately negotiate a comprehensive trade deal.

RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge. If Dow Jones settles above the 42,400 level, it will head towards the resistance at 42,700 – 42,800. On the support side, a move below the 50 MA at 42,197 will lead to the test of the nearest support level, which is located in the 42,000 – 42,100 range.

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