NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And Dow Jones Test Historic Highs

SP500

SP500 tests new highs as traders stay bullish. There are no important economic reports scheduled to be released today, so traders focus on general market sentiment. The rally is broad, and most market segments are moving higher in today’s trading session. Tech stocks are among the best performers in the SP500 index today. Meanwhile, energy stocks found themselves under pressure as traders reacted to strong pullbacks in natural gas and oil markets.

SP500 has recently managed to settle above the resistance at 5800 – 5810 and is heading towards the 5900 level. Traders should note that RSI is in the overbought territory, so the risks of a pullback are increasing. If SP500 declines below the 5850 level, it will move back towards the 5800 – 5810 level.

NASDAQ

NASDAQ gains ground amid strong demand for tech stocks. Arm Holdings, which is up by 8%, is the best performer in the NASDAQ index today.

In case NASDAQ settles above the 20,500 level, it will head towards the nearest resistance, which is located in the 20,700 – 20,800 range. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term. On the support side, a move below 20,300 will push NASDAQ towards the support level at 20,000 – 20,100.

Dow Jones

Dow Jones tested historic highs amid broad rally in the equity markets. The pullback in Caterpillar stock, which was down by 2% after a downgrade from Morgan Stanley, did not put any pressure on the Dow Jones index.

From the technical point of view, Dow Jones settled above the resistance at 42,600 – 42,700 and moved above the 43,000 level. If Dow Jones stays above 43,000, it will head towards the 43,500 level. RSI is in the overbought territory, so the risks of a pullback are rising.

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