NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Gains Ground As Tesla Tests Multi-Month Highs

Key Insights

• SP500 moved above the 4450 level but did not gain additional momentum.
• NASDAQ tested resistance in the 15,200 – 15,300 range. 
• Dow Jones was mostly flat in quiet trading. 

SP500

SP500 gained some ground in calm trading as traders reacted to the PMI reports. S&P Global Manufacturing PMI declined from 48.4 in May to 46.3 in June, while ISM Manufacturing PMI decreased from 46.9 to 46. Both reports indicated that the manufacturing sector remained under pressure. Traders have mostly ignored the PMI data as the market sentiment remained bullish ahead of the holiday. Saudi Arabia and Russia announced additional production cuts today, but energy stocks did not gain strong momentum as oil markets pulled back from session highs.

From the technical point of view, SP500 has almost managed to settle above the 4450 level. Today’s low-volume trading action cannot be called a true breakout, so SP500 needs to stay above 4450 on Wednesday to continue the current trend and gain additional upside momentum.

NASDAQ

NASDAQ has also moved higher in today’s trading session. Traders remain focused on the AI boom, which boosts demand for semiconductor stocks. It should be noted that Tesla tested new highs, which is bullish for NASDAQ index.

RSI remains in the moderate territory, so NASDAQ has a good chance to get above the resistance in the 15,200 – 15,300 level. In case NASDAQ fails to settle above 15,300, it will move back towards the 50 MA at 14,970.

Dow Jones

Dow Jones was flat in today’s trading. The trading session was calm, and the majority of the index components were mostly unchanged.

RSI remains in the overbought territory so Dow Jones will need material catalysts to climb above the resistance in the 34,500 – 34,600 range. On the support side, Dow Jones will likely get material support in the 34,200 – 34,250 range.

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