NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Gains Ground As Traders Focus On Dovish FOMC Minutes

SP500

SP500 is moving higher as traders react to dovish FOMC Minutes. The Minutes showed that Fed believed that inflation was moving towards its 2% target. Treasury yields are moving lower as bond traders bet that Fed will start the rate cut cycle at the next meeting. Falling Treasury yields provide additional support to major indices, although it looks that some traders prefer to take profits off the table ahead of Powell’s speech at Jackson Hole Symposium. Most market segments are moving higher as traders stay bullish. Interestingly, energy stocks managed to gain some ground despite the strong pullback in the oil markets.

In case SP500 climbs above the 5630 level, it will head towards the nearest resistance, which is located in the 5660 – 5675 range. On the support side, a move below 5600 will open the way to the test of the support at 5550 – 5570.

NASDAQ

NASDAQ gained some ground in quiet trading. Traders are not ready for big moves and wait for Powell’s comments.

The nearest significant resistance level for NASDAQ is located in the 20,100 – 20,200 range. A move above the 20,200 level will push NASDAQ towards historic highs near the 20,800 level.

Dow Jones

Dow Jones is flat as traders wait for additional catalysts. Interestingly, Dow Jones did not show any reaction to FOMC Minutes. American Express is the only notable loser in the Dow Jones index today. The stock is down by 2.8% as BofA Securities downgraded American Express from Buy to Neutral.

A move above the 41,000 level will push Dow Jones towards the resistance at 41,300 – 41,400. RSI has recently moved back into the moderate territory, so there is enough room to gain upside momentum in case the right catalysts emerge.

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