NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Gains Ground As Traders Focus On Inflation Data

SP500

SP500 gains ground as traders react to inflation reports. Inflation Rate declined from 3% in June to 2.9% in July, compared to analyst consensus of 3%. Core Inflation Rate decreased from 3.3% to 3.2%, in line with analyst expectations. The reaction in the Treasury market was muted, and it looks that decent inflation data has been already priced in. Most market sectors moved higher in today’s trading session. Traders expect that Fed will start its rate cut cycle, which could provide additional support to stocks.

SP500 has recently managed to climb above the resistance at 5400 – 5420 and is trying to settle above the 5450 level. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 5500 – 5570 range. It should be noted that RSI has recently moved into the overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ is losing some ground as Alphabet and Tesla are down by more than 3%. Google’s parent company found itself under pressure after a Bloomberg report indicated that U.S. Department of Justice was considering a breakup of the company.

If NASDAQ manages to settle above the 19,000 level, it will move towards the next resistance at 19,500 – 19,600. On the support side, a move below 18,900 will push NASDAQ towards the support level at 18,500 – 18,600.

Dow Jones

Dow Jones tests the 40,000 level after a successful test of the resistance at 39,700 – 39,800. Most components of the Dow Jones index are moving higher in today’s trading session.

If Dow Jones stays above the 40,000 level, it will move towards the resistance at 40,500 – 40,600. RSI is close to the overbought territory, but 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.