NASDAQ Index, SP500, Dow Jones Forecasts – Traders Stay Cautious Ahead Of Fed Decision

SP500

SP500 gains some ground as traders prepare for Fed Interest Rate Decision, which will be released soon. Analysts expect that the central bank will cut the rate from 4.0% to 3.75%. It should be noted that the Fed will also release Economic Projections, which will have a material impact on market dynamics. Industrials and healthcare stocks were among the biggest leaders in the SP500 index today. Tech stocks found themselves under pressure as traders reduced risks ahead of the Fed decision.

Currently, SP500 is trying to settle above the 6850 level. In case this attempt is successful, SP500 will head towards the nearest resistance level, which is located in the 6870 – 6880 range. A move above the 6880 level will push SP500 towards the 6930 level.

NASDAQ

NASDAQ remains stuck below the key resistance level at 25,750 – 25,800 as traders are cautious ahead of Fed Interest Rate Decision.

RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If NASDAQ manages to settle above the 25,800 level, it will head towards the next resistance at 26,250 – 26,300.

Dow Jones

Dow Jones gained ground amid rising demand for industrials and healthcare stocks. Nike, which is up by 3.1%, is the biggest gainer in the Dow Jones index today.

The nearest resistance level for Dow Jones is located in the 47,900 – 48,000 range. In case Dow Jones manages to settle above the 48,000 level, it will gain additional upside momentum and move towards historic highs near the 48,400 level. Traders should be prepared for volatility after Fed decision as Powell’s comments during the press conference will also have a material impact on Dow Jones.

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