NASDAQ Index, SP500, Dow Jones Analysis – Dow Jones Tests New Highs

Key Insights

• SP500 faced material resistance near the 4150 level. 
• NASDAQ moved back towards the 13,000 level. 
• Dow Jones made an attempt to settle above the resistance at 33,850.

SP500

SP500 tested the 4150 level after the release of U.S. inflation data but lost momentum and pulled back. Inflation Rate declined from 6% in February to 5% in March, but Core Inflation Rate grew from 5.5% to 5.6%. Traders continue to expect that Fed will raise the federal funds rate by 25 bps at the next meeting in May.

If SP500 settles above the 4150 level, it will move towards the next resistance at 4175. A successful test of this level will push SP500 towards the 4200 level. On the support side, SP500 needs to settle below the 4115 level to have a chance to gain downside momentum in the near term.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4070

NASDAQ

NASDAQ pulled back from session highs and settled near the 13,000 level. Treasury yields rebounded from session lows, putting some pressure on the yield-sensitive tech stocks.

A move below the 13,000 level will push NASDAQ towards the next support at 12,900. On the upside, a successful test of the resistance at 13,140 will open the way to the test of the next resistance level at 13,250.

R1:13,140 – R2:13,250 – R3:13,400

S1:13,000 – S2:12,900 – S3:12,750

Dow Jones

Dow Jones tested new highs amid strong demand for Dow, Salesforce, and Microsoft stocks. Dow Jones has outperformed SP500 and NASDAQ in recent trading sessions.

In case Dow Jones manages to settle above the 33,850 level, it will move towards the resistance at 34,000. On the support side, a successful test of the support at 33,700 will push Dow Jones towards the next support level, which is located at 33,500.

R1:33,850 – R2:34,000 – R3:34,200

S1:33,700 – S2:33,500 – S3:33,300

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