NASDAQ Index, SP500, Dow Jones Forecasts – Tech Rally Leads The Charge, DJI Lags Behind

Key Insights

• SP500 rebounds, driven by rising demand for tech stocks; however, many sectors still face pressure.
• Treasury yields surge, adversely impacting Real Estate and Utilities stocks.
• NASDAQ experiences a surge, buoyed by significant gains in heavyweights NVIDIA and Tesla.

SP500

SP500 continues to rebound from recent lows as traders focus on rising demand for tech stocks. Today’s rebound is not broad as many market segments remain under pressure. Treasury yields tested new highs, which was bearish for Real Estate and Utilities stocks which are often bought for their dividends. High yields for safe-haven assets like Treasuries make such stocks less attractive for investors. Energy stocks have also found themselves under pressure as oil markets pulled back amid worries about rising yields and China’s economic problems.

From the technical point of view, SP500 found support in the 4335 – 4350 range and is moving towards the nearest resistance level, which is located in the 4430 – 4450 range.

NASDAQ

NASDAQ gained strong upside momentum as tech stocks rallied. The rally was led by heavyweights like NVIDIA and Tesla, which were up by more than 6% in today’s trading session. The rising demand for these important stocks is a bullish sign for the whole NASDAQ index.

NASDAQ may face some resistance near the 50 MA at 14,990. If NASDAQ settles above the 50 MA, it will head towards the next resistance level, which is located in the 15,200 – 15,300 range.

Dow Jones

Dow Jones continues its attempts to settle below the support at 34,500 – 34,600. Today’s market demand is concentrated in tech stocks, which is bearish for Dow Jones. As a result, the majority of Dow Jones components are moving lower.

If Dow Jones stays below the 34,500 level, it will head towards the next support level, which is located in the 33,600 – 33,700 range. RSI has recently moved back into the moderate territory, so there is plenty of room to gain additional downside momentum.

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