NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows As Oil Pulls Back

SP500 Moves Away From Session Lows As Traders Buy The Dip

SP500 rebounded from session lows as traders focused on the pullback in the oil markets.

WTI oil pulled back below the $95.00 level, while Brent oil declined towards the $107.00 level as IEA members have started to release oil from strategic reserves. Earlier, Brent oil made an attempt to settle above the $119.00 level.

Traders also stay focused on yesterday’s comments from Fed Chair Powell, who signaled that Fed would not cut rates anytime soon. Today, ECB, BoE, and BoJ left interest rates unchanged and highlighted inflation risks due to high energy prices.

While global central bank action does not have a direct impact on U.S. stocks, traders monitor the situation in the global economy and worry that the global rate cut cycle could come to an end due to war in the Middle East.

Today, traders also focused on the Initial Jobless Claims report. The report indicated that 205,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 215,000.

Traders also had a chance to take a look at the New Home Sales report for January. The report showed that New Home Sales decreased by -17.6% on a month-over-month basis, compared to analyst consensus of -0.9%.

Philadelphia Fed Manufacturing Index grew from 16.3 in February to 18.1 in March, while analysts expected that it would decline to 10.

It should be noted that economic reports did not have a major impact on market dynamics as traders focused on comments from central banks and reacted to recent developments in the Middle East.

Energy stocks were among the biggest gainers today as traders bet that oil prices will stay high for weeks. Interestingly, tech stocks have also started to move higher, which indicates that the appetite for risk may increase in the near term.

Basic materials stocks were among the biggest losers as traders focused on the strong sell-off in precious metals markets.

Currently, SP500 is trying to settle back above the resistance at 6640 – 6650. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6710 – 6720 range.

NASDAQ Attempts To Rebound As Oil Prices Move Lower

NASDAQ has also moved away from session lows as traders used the pullback as an opportunity to increase their long positions in tech stocks.

If NASDAQ climbs back above the 24,400 level, it will move towards the resistance, which is located in the 24,700 – 24,750 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

On the support side, a move below the 24,200 level will push NASDAQ towards the nearest support at 23,950 – 24,000.

Dow Jones Is Moving Towards The Resistance At 46,300 – 46,400

Dow Jones has also started to rebound as traders bought the dip. Chevron, which was up by 1.4%, was the biggest gainer in the Dow Jones index today. The company’s shares moved higher amid rising demand for tech stocks.

The nearest resistance level for Dow Jones is located in the 46,300 – 46,400 range. If Dow Jones manages to settle above the 46,400 level, it will move towards the next resistance level at 47,100 – 47,200.

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