NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Climbs Towards Historic Highs

Key Insights

• SP500 moved towards the 4760 level as traders ignored rising Treasury yields. 
• NASDAQ climbed towards the 17,000 level amid rising demand for tech stocks. 
• Dow Jones gained some ground, led by Boeing and Apple. 

SP500

SP500 is moving higher as traders react to economic reports. Building Permits increased by 1.9% month-over-month in December, while Housing Starts declined by 4.3%. Initial Jobless Claims decreased from 203,000 to 187,000, highlighting the strength of the job market. Philadelphia Fed Manufacturing Index improved from -12.8 in December to -10.6 in January but remained in the negative territory. From a big picture point of view, the manufacturing sector stays under pressure, but U.S. economy is supported by the strong services sector. Treasury yields tested new highs as bond traders reduced their bets on a dovish Fed. However, this move did not put pressure on SP500, and it looks that general market sentiment remains bullish despite the recent pullback.

In case SP500 settles above the 50 MA at 4764, it will head towards the resistance near the recent highs at 4810 – 4820.

NASDAQ

NASDAQ gains ground amid rising demand for tech stocks. Apple, which is up by 3%, is among the biggest gainers in the NASDAQ index today. The stock gained upside momentum after an upgrade from BofA Securities.

If NASDAQ manages to settle above the 17,000 level, it will gain additional momentum and test historic highs. RSI remains in the moderate territory, which is bullish for NASDAQ.

Dow Jones

Dow Jones gains some ground, supported by the strong performance of Apple and Boeing stocks. Boeing gained 4% as some traders were ready to bet on a rebound after the strong pullback, which was triggered by the problems of 737 MAX 9.

If Dow Jones settles above the nearest resistance at 37,400 – 37,500, it will move towards the next resistance level at 37,750 – 37,800.

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