NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Traders Focus On Fed Decision

SP500

SP500 tested new highs as traders prepared for the Fed Interest Rate Decision. The central bank is expected to cut the interest rate from 5% to 4.75%. Today, traders had a chance to take a look at the Initial Jobless Claims report. The report indicated that 221,000 Americans filed for unemployment benefits in a week, in line with analyst estimates. Today’s rally was led by technology stocks. It should be noted that most market sectors gained upside momentum in today’s trading session.  However, financial stocks found themselves under pressure as traders took profits after yesterday’s rally.

SP500 climbed above the 5950 level and is moving towards the psychologically important 6000 level. RSI is in the overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ tested historic highs amid rising demand for tech stocks. Super Micro Computer, which was up by 11.2%, was the biggest gainer in the NASDAQ index today. The stock has finally started to rebound after the strong sell-off.

Currently, NASDAQ is trying to settle above the 21,000 level. Technically, NASDAQ is overbought. However, the rally may continue if the Fed is more dovish than analysts expect.

Dow Jones

Dow Jones moved away from session highs as traders have started to take some profits off the table ahead of the Fed decision. With minutes left before the Fed announces its decision, traders are not ready to increase their long positions.

Dow Jones faced some resistance near the 43,850 level and is trying to settle below 43,700. In case this attempt is successful, Dow Jones will move towards the nearest support level, which is located in the 43,200 – 43,300 range. Traders should note that technical factors will take a back seat when the Fed releases FOMC Statement.

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