NASDAQ Index, SP500, Dow Jones Forecasts – Nvidia’s 5% Surge Lifts Technology Sector

By:

James Hyerczyk

Updated: Jun 26, 2024, 02:27 GMT+00:00

Key Points:

S&P 500 experiences mixed performance, with tech gains offset by real estate and materials declines.
Nasdaq rises 1%, led by tech megacaps and a Nvidia surge boosting chip sector performance.
The Dow Jones Industrial Average slips from a one-month high, led by Home Depot and Walmart declines.

S&P 500

4-Hour S&P 500 Index

The S&P 500 saw mixed results on Tuesday, with only two of its 11 sectors gaining ground. Technology stocks led the charge, with Nvidia soaring over 5% and the communication services index boosted by Alphabet and Meta Platforms. However, real estate and materials sectors dragged the index down, declining 1.3% and 1.2%, respectively. The market’s focus remains on positioning ahead of the critical PCE price index data due later this week.

The S&P 500 shows support at 5,450.8 to 5,440.8 and resistance at 5,520.0 to 5,530.6. The index is slightly above the 50-period moving average at 5,471.2, indicating an uptrend. The RSI at 52.84 suggests neutral to bullish momentum. Current price action reflects consolidation within these zones. Given the recent price action, the 50-period MA is a key indicator of investor sentiment. Based on the current price, the benchmark index is at a critical juncture.

Nasdaq

Daily US 100 Nasdaq

The Nasdaq Composite rose 1% on Tuesday, driven by a strong performance in tech megacaps. Nvidia surged more than 5% after a brief sell-off, bolstering the broader chip sector and helping the Philadelphia Semiconductor index climb 1.6%. Despite recent volatility, investors shifted back into technology stocks, which had been lagging. The index recorded 39 new highs and 146 new lows, with tech giants such as Alphabet and Meta Platforms contributing significantly to the gains.

The Nasdaq 100 shows support at 19,649 to 19,595 and resistance at 19,995.8 to 20,111. The market is currently below the 50-period moving average of 19,764.3, indicating a potential downtrend. The RSI at 50.17 suggests neutral momentum, with price action consolidating within these zones. Recovering the 50-period MA is the key to resuming the uptrend.

Dow Jones Industrial Average

4-Hour Dow Jones Industrial Average

The Dow Jones Industrial Average slipped on Tuesday, retreating from its recent one-month high. Home improvement retailer Home Depot led the declines, falling 3.8%, while Walmart also dropped 2.8% following cautious remarks from its CFO. Additionally, the Dow Jones Transport Average fell 1.3%, weighed down by Norfolk Southern and FedEx ahead of its earnings report. Investors are eyeing Friday’s personal consumption expenditures (PCE) price index for further clues on U.S. inflation.

The Dow Jones Industrial Average is showing support at 39144.87 to 39,006 and resistance at 39,702 to 39805.97. The 50-period moving average is at 38,925, indicating a slight uptrend. The RSI is at 48.84, suggesting neutral momentum. The overall trend is based on recent price action and technical indicators, showing consolidation at support after recent gains. We’ll find out whether the recent rally was legit by how traders react to the 50-period MA.

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.