NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound As Trump Rules Out Using Force To Acquire Greenland

SP500

SP500 moved higher as traders react to Donald Trump’s comments in Davos. Trump put pressure on Europe to cede control of Greenland but ruled out the use of force to acquire the island. It looks that some traders were worried that the U.S. could use military force to take control of Greenland, so Trump’s comments triggered a relief rally. Treasury yields pulled back as bond markets calmed down. However, bond yields stay close to recent highs, and the continuation of the recent trend may put additional pressure on major indices. Today, traders also had a chance to take a look at the Pending Home Sales report for December. The report indicated that Pending Home Sales decreased by -9.3% month-over-month, compared to analyst forecast of -0.3%. The report did not have a major impact on stocks as traders focused on geopolitical developments. The rebound was broad, and most market sectors gained ground in today’s trading session. Energy stocks were among the biggest gainers as traders reacted to the huge rally in natural gas markets.

In case SP500 settles above the 6850 level, it will head towards the nearest resistance, which is located in the 6870 – 6880 range.

NASDAQ

NASDAQ gained some ground as demand for tech stocks increased. Intel, which was up by 9.6%, was the biggest gainer in the NASDAQ index today.

The nearest resistance level for NASDAQ is located in the 25,200 – 25,250 range. A move above the 25,250 level will open the way to the test of the 50 MA at 25,481.

Dow Jones

Dow Jones has also moved higher, supported by rising demand for healthcare and financial stocks.

In case Dow Jones settles above the 48,800 level, it will head towards the 50 MA at 49,120. A move above the 50 MA will push Dow Jones towards the resistance at 49,500 – 49,600.

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