NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Tesla Rallies 4.6%

SP500

SP500 gains some ground as traders start to prepare for the Fed decision, which will be released on Wednesday. Today, traders focused on Dallas Fed Manufacturing Index report, which indicated that Dallas Fed Manufactring Index declined from -15.1 in June to -17.5 in July. The report missed analyst forecast of -12 but did not have a major impact on market dynamics. Energy stocks were moving lower as traders focused on the pullback in the oil market. Consumer cyclical and utilities stocks were among the leaders, which indicates that demand for safe-haven assets increased ahead of the Fed decision.

SP500 has recently made an attempt to settle below the support at 5450 – 5465 but failed to develop sufficient momentum. In case SP500 climbs above the 5500 level, it will get to the test of the nearest resistance at 5520 – 5530.

NASDAQ

NASDAQ has also managed to gain some ground, supported by the strong performance of Tesla stock. Tesla is up by 4.6% as traders bet that the pullback after the recent earnings report was unjustified.

If NASDAQ settles below the 19,000 level, it will head towards the next support at 18,500 – 18,600. On the upside, a move above 19,250 will push NASDAQ towards the 50 MA at 19,472.

Dow Jones

Dow Jones is flat as traders wait for additional catalysts. McDonald’s, which is up by 4.1%, is the biggest gainer in the Dow Jones index today. The stock gained upside momentum despite missing analyst estimates on earnings and revenue.

If Dow Jones settles above the 40,800 level, it will head towards the nearest significant resistance at 41,300 – 41,400. On the support side, a move below 40,600 will open the way to the test of the support at 40,300 – 40,400. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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