NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Gains Ground As Traders Focus On Powell’s Comments

SP500

SP500 gains ground as traders react to Fed Chair Powell’s comments. Powell noted that second-quarter economic data showed that inflation was moving towards Fed’s 2% target. He also said that inflation and labor market were in a better balance and added that an unexpected weakening of the labor market would force the Fed to react. Today, traders also had a chance to take a look at NY Empire State Manufacturing Index report for July. The report showed that NY Empire State Manufacturing Index decreased from -6.0 in June to -6.6 in July, compared to analyst consensus of -6. Interestingly, energy stocks were among the biggest gainers in SP500 today despite the pullback in the oil and natural gas markets.

Currently, SP500 is trying to settle above the 5650 level. In case this attempt is successful, SP500 will head towards 5700. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ is moving higher as demand for tech stocks remains strong. However, NASDAQ did not manage to settle above the key resistance at 20,500 – 20,600. It looks that traders continue to take profits near historic highs ahead of the Fed decision, which will be released at the end of the month.

A move above the 20,600 level will push NASDAQ towards new highs near the 21,000 level.

Dow Jones

Dow Jones tests new highs as the rally continues. Caterpillar, which is up by 3.3%, is the biggest gainer in the Dow Jones index today.

The technical picture is bullish, and Dow Jones looks ready to test the 40,500 level. RSI is in the overbought territory, but there is enough room to gain additional upside momentum in the near term.

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