NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Tests New Highs As Rally Continues

Key Insights

• SP500 remains stuck in the 4115 – 4150 range after the release of PPI data. 
• NASDAQ tests new highs as Google stock rallies. 
• Dow Jones tested support at 33,175 as Disney stock declined by 9%. 

SP500

SP500 pulled back as traders reacted to PPI and Initial Jobless Claims reports. PPI increased by 0.2% month-over-month in April, while analysts expected that it would grow by 0.3%. Initial Jobless Claims increased from 242,000 to 264,000. It looks that traders focused on rising Initial Jobless Claims, which showed that the job market has started to feel the pressure from high interest rates.

From the technical point of view, SP500 continues to consolidate in the 4115 – 4150 range. Most likely, it will need additional catalysts to move out of this range.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4070

NASDAQ

NASDAQ tested new highs as Alphabet stock gained 4.5%. The stock showed strong performance in recent trading sessions as traders bet on the company’s AI initiatives.

RSI remains in the moderate territory, so there is enough room to gain additional momentum in case the right catalysts emerge. A move above the resistance at 13,400 will push NASDAQ towards the resistance level at 13,550.

R1:13,400 – R2:13,550 – R3:13,700

S1:13,250 – S2:13,140 – S3:13,000

Dow Jones

Dow Jones remained under strong pressure as Disney stock dived 9% after the release of its earnings report, which showed that Disney+ lost 4 million subscribers.

A move below the support at 33,175 will push Dow Jones towards the next support level, which is located at 33,000. In case Dow Jones manages to settle below this level, it will head towards the support at 32,800.

R1:33,300 – R2:33,500 – R3:33,700

S1:33,175 – S2:33,000 – S3:32,800

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