NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests New Highs As Intel Gains 5.9%

SP500

SP500 tests new highs as the rally continues. Traders stay bullish ahead of Powell testimony on Tuesday. Treasury yields are swinging between gains and losses as bond traders are not ready for big moves ahead of the key event of the week. Powell may say that Fed needs more time to see that inflation is slowing down, but the market is not worried about Fed policy outlook. From a big picture point of view, traders are focused on the potential of AI technology. Tech stocks are among the biggest gainers in the SP500 index today. Meanwhile, energy stocks have found themselves under pressure amid pullback in the oil markets.

RSI remains in the overbought territory, so the risks of a pullback are increasing. However, SP500 may gain additional upside momentum and move towards the 5600 level in case SP500 settles above 5575.

NASDAQ

NASDAQ gains ground as demand for tech stocks remains strong. Intel, NVIDIA, and Advanced Micro Devices are among the biggests gainers in the NASDAQ index today.

The technical picture remains extremely bullish, and high RSI is the only potential problem for the bulls. NASDAQ is overbought, so the index may be extremely sensitive to any hawkish remarks from Fed Chair Powell.

Dow Jones

Dow Jones pulled back as traders remained focused on tech stocks. Intel’s strong performance did not provide sufficient support to the Dow Jones index today. Nike, which is down by 2.7%, tested multi-year lows amid worries about the company’s stagnating revenue in recent quarters.

A move below the 50 MA at 39,242 will push Dow Jones towards the support at 39,000 – 39,100. On the upside, Dow Jones needs to settle above the resistance at 39,700 – 39,800 to gain sustainable momentum.

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