NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Demand For Tech Stocks Stays Strong

Key Insights

• SP500 is trying to climb above the key 4900 level. 
• NASDAQ is moving higher amid strong demand for tech stocks. 
• Dow Jones is mostly flat amid a lack of catalysts.

SP500

SP500 continues its attempts to settle above the 4900 level as traders prepare for Fed Interest Rate Decision, which will be released on Wednesday. Today, traders had a chance to take a look at Dallas Fed Manufacturing Index report, which showed that Dallas Fed Manufacturing Index declined from -9.3 in December to -27.4 in January. SP500 has mostly ignored the report as traders were focused on Fed policy outlook. Most market segments are moving higher today, but energy stocks have found themselves under pressure due to the sell-off in the oil markets. Treasury yields were moving lower amid rising demand for safe-haven assets after a deadly attack on U.S. personnel in Jordan. Defensive stocks from sectors like Utilities and Healthcare were among the best performers in SP500 today.

From the technical point of view, SP500 needs to settle above the 4900 level to gain additional upside momentum. Traders should note that RSI remains in the overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ gains ground as demand for tech stocks remains strong. Tesla, which is up by 2.5%, is among the biggest gainers in the NASDAQ index today. The stock is moving higher as traders use the recent pullback as an opportunity to increase their long positions in Tesla.

A successful test of the resistance at 17,450 – 17,500 will open the way to the test of the recent highs near the 17,700 level.

Dow Jones

Dow Jones is flat as traders wait for additional catalysts. Salesforce, which is up by 1.8%, is the biggest gainer in the Dow Jones index today. Salesforce shares are moving higher amid rising demand for tech stocks.

Dow Jones needs to climb above the 38,200 level to gain additional momentum. RSI remains in the moderate territory, which is bullish for Dow Jones.

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