NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows

Key Insights

• SP500 moved away from session lows as traders focused on the pullback in Treasury yields. 
• NASDAQ has also rebounded but traders remained cautious ahead of tomorrow’s Non Farm Payrolls report. 
• Dow Jones stabilized near the support in the 33,000 – 33,100 range. 

SP500

SP500 rebounds from session lows as traders focus on falling Treasury yields and the strong pullback in the oil markets. WTI oil declined below the $83.00 level amid demand worries. At this point, lower oil prices are bullish for stocks as they lead to lower inflation. Today, traders also had a chance to take a look at the Initial Jobless Claims report, which showed that 207,000 Americans filed for unemployment benefits in a week. From a big picture point of view, SP500 is trying to stabilize after the recent pullback. However, Treasury yields stay close to multi-year highs, so it remains to be seen whether SP500 will gain sustainable upside momentum in the near term.

In case SP500 climbs back above the resistance at 4260 – 4280, it will head towards the next resistance level, which is located in the 4335 – 4350 range.

NASDAQ

NASDAQ has also moved away from session lows, although the majority of the index components remained under pressure. Traders are waiting for additional catalysts and are not ready for big moves ahead of tomorrow’s Non Farm Payrolls report.

If NASDAQ stays above the 14,680 level, it will head towards the resistance at 15.200- 15,300.

Dow Jones

Dow Jones stabilized near the support level in the 33,000 – 33,100 range. Coca-Cola, which is down by 4%, is the biggest loser in the Dow Jones index today.

In case Dow Jones settles above the 33,100 level, it will head towards the resistance, which is located in the 33,600 – 33,700 range.

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