NASDAQ Index, SP500, Dow Jones Analysis – Stocks Rally To New Highs

Key Insights

• SP500 settled above the 4400 level as traders reacted to the strong Retail Sales report. 
• NASDAQ tested new highs as traders focused on lower Treasury yields and U.S. dollar’s pullback. 
• Dow Jones climbed above the 34,400 level. 

SP500

SP500 tests new highs as the strong rally continues. U.S. dollar’s pullback and lower Treasury yields provided material support to major indices today. The rally is broad, and all market segments are moving higher. The rally is led by energy stocks, which gained strong upside momentum as natural gas gained 8% while WTI oil climbed back above the $70 level. Today, traders also focused on the Retail Sales report, which showed that Retail Sales increased by 0.3% month-over-month in May, compared to analyst consensus of -0.1%. The report provided additional support to SP500 today.

The current bullish trend remains strong, and SP500 is moving towards the 4450 level. RSI is in the overbought territory, so some traders may soon start to take profits after the rally.

NASDAQ

NASDAQ is also moving higher at a robust pace. Demand for AI stock remains strong, while the pullback in Treasury yields provides additional support to the yield-sensitive index.

The recent pullback was quickly bought as there are too many buyers for AI-related stocks. As in the case of SP500, the high RSI is the main problem for the bulls, although it should be noted that RSI is always in the overbought territory during a strong rally.

Dow Jones

Dow Jones managed to climb above the 34,300 level and tested new highs. Nike and American Express were the only losers in the Dow Jones index today, so the rally was extremely broad.

The good news for Dow Jones bulls is that the index has finally managed to get above the resistance in the 34,200 – 34,300 area, which has become the new support level. RSI has just entered into the overbought territory, so there is enough room to gain additional momentum.

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