NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Gain Ground After Powell Speech

Key Insights

• SP500 rallied as Powell’s comments did not reveal anything new. 
• NASDAQ rebounded towards the 15,000 level. 
• Dow Jones saw broad-based gains, with only two components in the red, signaling market-wide optimism.

SP500

SP500 gains ground as traders react to Powell’s comments at the Jackson Hole Symposium. Powell noted that Fed would raise rates further if necessary, but he did not say anything new. Treasury yields moved higher when Powell was speaking but have pulled back later. The U.S. dollar has also moved away from session highs, indicating that traders were not ready to bet on a more hawkish Fed.  Today, traders also had a chance to take a look at the final reading of the Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment declined from 71.6 in July to 69.5 in August, compared to analyst consensus of 71.2. Traders have mostly ignored the report as they focused on Powell speech.

SP500 is moving towards the resistance in the 4430 – 4450 range. A move above the 4450 level will open the way to the test of the 200 MA at 4495.

NASDAQ

NASDAQ has also managed to gain upside momentum in today’s trading session. Tesla, which is up by 3%, is among the biggest gainers in the NASDAQ index today. From a big picture point of view, traders used the recent pullback as an opportunity to establish long positions at attractive levels.

If NASDAQ manages to settle above the 50 MA at 14,930, it will move towards the next resistance level, which is located in the 15,200 – 15,300 range.

Dow Jones

Dow Jones moved higher amid a broad rebound in the equity markets. Today’s rebound was broad as just two Dow Jones components were moving lower.

The nearest resistance level for Dow Jones is located in the 34,500 – 34,600 range. In case Dow Jones climbs above the 34,600 level, it will head towards the next resistance at 35,000 – 35,100.

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