NASDAQ Index, SP500, Dow Jones Analysis – SP500 Moves Higher After Strong GDP Report

Key Insights

• SP500 tries to climb above the 4400 level as traders react to the GDP report. 
• NASDAQ is losing ground as Treasury yields test new highs. 
• Dow Jones gains ground as financial stocks enjoy strong support. 

SP500

SP500 gained some ground as traders focused on the better-than-expected GDP report. Importantly, SP500 managed to move higher despite rising Treasury yields. The yield of 2-year Treasuries gained strong momentum and tested multi-year highs at 4.89%. Today, traders also had a chance to take a look at the Pending Home Sales report, which showed that Pending Home Sales declined by 2.7% in May. The report did not have a significant impact on major indices as traders were mostly focused on GDP data and Treasury yield dynamics.

SP500 is currently trying to settle above the 4400 level. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 4430 – 4450 range.

NASDAQ

NASDAQ pulls back as rising Treasury yields are bearish for the yield-sensitive tech stocks. From a big picture point of view, NASDAQ needs additional catalysts to test new highs. Demand for tech stocks remains strong. However, traders should note that NASDAQ moved from 11,000 to 15,000 in the first half of the year, so profit-taking will remain an important factor in the upcoming weeks.

NASDAQ has recently moved back below the 50 MA, which indicated that it failed to gain upside momentum. From the technical point of view, the index remains stuck between the support at 14,600 and the resistance at 15,300.

Dow Jones

Dow Jones moved higher as financial stocks gained strong upside momentum. Goldman Sachs, JPMorgan Chase, and Visa were up by roughly 3% in today’s trading session.

Dow Jones managed to settle above the 50 MA and is moving towards the resistance in the 34,200 – 34,250 area. RSI remains in the moderate territory, so there is enough room to gain momentum in case the right catalysts emerge.

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