NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests Historic Highs

SP500

SP500 is mostly flat as traders wait for additional catalysts. There are no important economic reports scheduled to be released today, so traders are focused on general market sentiment. From a big picture point of view, traders may want to take some profits off the table after the strong rally, which was triggered by Donald Trump’s victory. RSI is in the overbought territory, so the risks of a pullback are increasing.

The nearest support level for SP500 is located in the 5980 – 5990 range. In case SP500 manages to settle below the 5980 level, it will head towards the next support level at 5880 – 5890.

NASDAQ

NASDAQ made an attempt to settle above the resistance at 21,100 – 21,200 but lost momentum and pulled back. Tech stocks like Super Micro Computer, Arm Holdings, Intel, and Micron found themselves under pressure in today’s trading session.

NASDAQ has recently made an attempt to settle back below the 21,000 level. If NASDAQ settles below 21,000, it will gain additional downside momentum and move towards the nearest support, which is located in the 20,700 – 20,800 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones tested historic highs as rally continued. The rally was led by Salesforce stock, which was up by 5.7%. The stock tested new highs as the company plans to hire more than 1,000 specialists to boost AI product sales.

Dow Jones is overbought, but traders stay optimistic. A move above the 44,500 level will push Dow Jones towards the psychologically important 45,000 level. On the support side, a move below the 44,000 level will open the way to the test of the nearest support at 43,800 – 43,900.

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