NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Wobble As Traders Focus On Wild Swings In Oil Markets

SP500 Tested New Highs As Rebound Continued

SP500 gained some ground as traders focused on the dynamics of oil markets and reacted to recent comments from White House Press Secretary Karoline Leavitt.

WTI oil made an attempt to settle below the $80.00 level after Energy Secretary Chris Wright posted that U.S. escorted an oil tanker through the Strait of Hormuz. This post provided additional support to stocks.

However, Leavitt said that U.S. did not escort any tankers. Wright’s post has been taken down. Oil prices moved away from session lows as traders focused on Leavitt’s comments. Stocks pulled back as oil rebounded.

Oil traders faced record volatility in recent trading sessions, which stock markets were more calm. Stock traders are trying to guess whether Trump ends the operation against Iran soon or the war lasts for weeks. From a big picture point of view, traders are ready to buy any significant pullback.

Today, traders also had a chance to take a look at the Existing Home Sales report for February. The report indicated that Existing Home Sales increased by +1.7% month-over-month in February, compared to analyst forecast of -0.8%.

Basic materials stocks were among the biggest gainers today as traders focused on the strong rally in precious metals markets. Consumer defensive stocks have also moved higher, and it looks that demand for safe-haven assets increased amid geopolitical uncertainty. Energy stocks moved lower as oil prices pulled back from multi-year highs.

Currently, SP500 has recently made an attept to settle above the resistance level at 6840 – 6850 but lost momentum and pulled back. If SP500 manages to settle above the 6850 level, it will move towards the next resistance at 6900 – 6910.

NASDAQ Gained Some Ground Ahead Of CPI Report

NASDAQ moved higher as traders reacted to the developments in the Middle East and prepared for CPI data, which will be released tomorrow.

Analysts expect that Inflation Rate remained unchanged at 2.4% in February. Core Inflation Rate is also expected to remain unchanged at 2.5%.

It should be noted that energy prices have started to move higher in the second half of February, but it remains to be seen whether it had any material impact on inflation. The true rally in the oil markets started in March, and it will push March inflation numbers higher.

Currently, NASDAQ is trying to settle above the resistance at 25,200 – 25,250. This resistance level has already been tested several times and proved its strength. In case NASDAQ moves above the 25,250 level, it will move towards the next resistance at 25,600 – 25,650.

Dow Jones Tested Resistance At 47,900 – 48,000

Dow Jones has also managed to gain some ground as traders remained bullish after the recent rebound.

Cisco, which was up by 2.4%, was the biggest gainer in the Dow Jones index today.

From the technical point of view, Dow Jones attempts to settle above the resistance level at 47,900 – 48,000. If Dow Jones manages to settle above the 48,000 level, it will get to the test of the 50 MA at 48,184. A move above the 50 MA will push Dow Jones towards the resistance at 48,700 – 48,800.

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