NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Tests New Highs As Netflix Gains 9.5%

Key Insights

• SP500 continues to move higher as traders bet on successful debt ceiling negotiations. 
• NASDAQ tested new highs as demand for tech stocks remained strong. 
• Dow Jones pulled back after yesterday’s rebound. 

SP500

SP500 gains ground as traders remain optimistic after the recent comments from U.S. President Joe Biden, who said that U.S. would not default. Today, traders also focused on the Initial Jobless Claims report, which indicated that 242,000 Americans filed for unemployment benefits in a week. Existing Home Sales declined by 3.4% in April as home buyers were not ready to increase their purchases in an uncertain interest rate environment. Meanwhile, Treasury yields continued to move higher at a robust pace, but this move did not put any pressure on SP500.

From the technical point of view, SP500 settled above the previous 4115 – 4150 range and has a good chance to develop sustainable upside momentum.

R1:4175 – R2:4200 – R3:4250

S1:4150 – S2:4115 – S3:4090

NASDAQ

NASDAQ continues to move higher amid rising demand for tech stocks. Netflix, which is up by 9.5%, is the biggest gainer in the NASDAQ index today. The stock gained strong upside momentum after the company said that its ad-supported tier reached nearly 5 million active users per month.

It should be noted that RSI has recently entered into the overbought territory, so the risks of a pullback are rising. At the same time, demand for tech stocks remains strong, so NASDAQ may gain more ground in case the right catalysts emerge.

R1:13,900 – R2:14,100 – R3:14,300

S1:13,700 – S2:13,550 – S3:13,400

Dow Jones

Dow Jones pulled back after yesterday’s rebound. Intel, which was up by 2%, was the only notable gainer in the Dow Jones index.

If Dow Jones settles back below 33,300, it will head towards the support at 33,175. On the upside, a move above the resistance at 33,500 will push Dow Jones towards the next resistance level at 33,800.

R1:33,500 – R2:33,800 – R3:34,000

S1:33,300 – S2:33,175 – S3:33,000

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