NASDAQ Index, SP500, Dow Jones Analysis – Stocks Gain Ground As Traders Bet On A Dovish Fed

Key Insights

• SP500 remains stuck near the key resistance at 4285.
• NASDAQ rebounds after yesterday’s sell-off. 
• Dow Jones is trying to settle above the resistance at 33,800.

SP500

SP500 continues its attempts to settle above the resistance at 4285 as traders react to the Initial Jobless Claims report, which showed that 261,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 235,000, so the report has significantly exceeded analyst estimates. Treasury yields are moving lower as traders bet on a more dovish Fed after the release of the disappointing job market data.

From the technical point of view, SP500 needs to settle above the 4285 level to have a chance to gain sustainable upside momentum. RSI remains in the moderate territory, so there is enough room to gain additional momentum in case the right catalysts emerge.

R1:4285 – R2:4325 – R3:4360

S1:4250 – S2:4215 – S3:4200

NASDAQ

NASDAQ rebounded after yesterday’s sell-off, which was triggered by profit-taking. The pullback in Treasury yields provided some support to the yield-sensitive tech stocks. However, the key catalyst for the rebound is the strong bullish sentiment towards AI-related stocks.

In case NASDAQ settles back above the resistance at 14,450, it will head towards the next resistance level at 14,600. A successful test of this level will push NASDAQ towards the 14,800 level.

R1:14,450 – R2:14,600 – R3:14,800

R1:14,300 – R2:14,100 – R3:14,000

Dow Jones

Dow Jones tests resistance at 33,800 amid a broad market rebound. Boeing, which is up by 3.5%, is the biggest gainer in the Dow Jones index today.

If Dow Jones settles above 33,800, it will head towards the resistance at 34,000. A move above this level will open the way to the test of the next resistance, which is located at 34,130.

R1:33,800 – R2:34,000 – R3:34,130

S1:33,650 – S2:33,500 – S3:33,300

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