NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Climbs Above 40,000

SP500

SP500 tests new highs as traders react to PPI reports. PPI increased by 0.2% month-over-month in June, compared to analyst consensus of +0.1%. Core PPI grew by 0.4%, while analysts expected that it would increase by 0.2%. Treasury yields moved lower despite higher-than-expected PPI data, which was bullish for equity markets. Today, traders also had a chance to take a look at Michigan Consumer Sentiment report for July. The report showed that Consumer Sentiment declined from 68.2 in June to 66.0 in July, compared to analyst forecast of 68.5. It should be noted that today’s rally is broad, and all market segments are moving higher.

In case SP500 settles above the 5660 level, it will head towards the 5700 level. RSI has recently moved back into the overbought territory, but there is enough room to gain additional upside momentum.

NASDAQ

NASDAQ gains ground as tech stocks rebound after yesterday’s pullback. NVIDIA, Intel, and Arm Holdings are among the biggest gainers in the NASDAQ index today. Traders stay focused on AI-related stocks and are ready to buy the dips.

The nearest resistance level for NASDAQ is located in the 20,500 – 20,600 range. A move above the 20,600 level will provide NASDAQ with a chance to gain additional upside momentum.

Dow Jones

Dow Jones tests new highs amid broad rally in the equity markets. Finally, Dow Jones managed to settle above the psychologically important 40,000 level.

The technical picture looks bullish as Dow Jones has recently managed to clmb above the strong resistance in the 39,700 – 39,800 range. RSI is in the overbought territory, so the risks of a pullback are increasing. However, a move above the 40,000 level should provide sufficient support to Dow Jones and attract speculative players.

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