NASDAQ Index, SP500, Dow Jones Analysis – Stocks Gain Ground As Treasury Yields Decline

Key Insights

• SP500 settled above the 4400 level.
• NASDAQ climbed above 15,000 as traders focused on the pullback in Treasury yields. 
• Dow Jones gained ground as the rebound continued. 

SP500

SP500 moved back above the 4400 level as traders reacted to the better-than-expected Consumer Inflation Expectations report. Treasury yields are moving lower as traders bet on a less hawkish Fed. However, falling yields did not provide significant support to SP500 in today’s trading session. Traders stay cautious as they wait for additional catalysts that may push SP500 above the 4450 level.

From the technical point of view, SP500 has settled below the 50 MA at 4420. In order to gain upside momentum, SP500 must get above the 50 MA and climb above the resistance in the 4430 – 4450 range.

NASDAQ

NASDAQ is mostly flat in today’s quiet trading. Traders are not ready for big moves as they are waiting for the inflation reports which will be released on Wednesday. Traders are also cautious as the earnings season begins. NASDAQ enjoyed a strong rally in the first half of the year, so the stocks will need to meet ambitious expectations during the earnings season.

NASDAQ settled near the 15,000 level. Traders should note that the nearest strong support level is located in the 14,560 – 14,680 range, so NASDAQ may gain significant downside momentum in case it manages to settle below the recent lows at 14,930. On the upside, NASDAQ must climb above the 15,300 level to gain sustainable upside momentum.

Dow Jones

Dow Jones moved above the 33,900 level as the rebound continued. The rebound is broad, and the majority of Dow Jones components are moving higher in today’s trading session.

Dow Jones has already settled above the 33,785 – 33,875 area. In case Dow Jones climbs above the 34,000 level, it will move towards the 50 MA at 34,115. On the support side, a move below the 33,785 level will open the way to the test of the support in the 33,500 – 33,600 range.

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