NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Multi-Month Lows
- SP500 gained upside momentum and moved away from multi-month lows.
- NASDAQ climbed back above the 14,500 level.
- Dow Jones managed to get above the 33,500 level amid a broad rebound in the equity markets.
SP500 rebounds from session lows as traders bet on a rebound after the strong pullback. Treasury yields are moving higher as traders prepare for a potential rate hike from the Fed. The yield of 2-year Treasuries settled near the 5.15% level, which is worrisome for the bulls. However, SP500 has recently managed to gain upside momentum. The rebound is led by energy stocks. WTI oil moved towards the $94.00 level as traders reacted to the EIA report, which showed that crude inventories declined by 2.2 million barrels.
From the technical point of view, RSI has just moved back into the moderate territory, so there is plenty of room to gain downside momentum in case Treasury yields continue to move higher.
NASDAQ has also moved away from session lows as traders used the recent pullback as an opportunity to increase their long positions at attractive levels. Some traders would likely prefer to make some changes in their portfolios ahead of the final quarter of the year, so trading may be choppy in the next few sessions.
In case NASDAQ settles back above the 14,680 level, it will head towards the 50 MA at 14,900. A move above the 50 MA will push NASDAQ towards the 200 MA at 15,130.
Dow Jones climbed back above the 33,500 level amid a broad rebound in the equity markets. Dow Jones was oversold, so it’s not surprising to see that traders were willing to bet on a technical rebound from the recent lows.
If Dow Jones manages to settle back above the 33,600 – 33,700 range, it will gain additional upside momentum and move towards the 50 MA at 34,210.
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