NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Rebounds Towards 5300

SP500

SP500 gains ground as traders react to the Durable Goods Orders report, which indicated that Durable Goods Orders increased by 0.7% month-over-month in April. Analysts expected that Durable Goods Orders would decline by 0.8%, so the report exceeded analyst expectations. The final reading of Michigan Consumer Sentiment report showed that Consumer Sentiment declined from 77.2 in April to 69.1 in May, compared to analyst forecast of 67.5. Treasury yields were mostly flat as bond traders waited for additional catalysts. Today’s move was broad, and most market segments gained ground in today’s trading session. General market sentiment remains extremely bullish, so traders used yesterday’s pullback as an opportunity to increase their long positions.

In case SP500 climbs above the 5300 level, it will head towards the nearest resistance, which is located in the 5320 – 5330 range.

NASDAQ

NASDAQ is moving higher amid rising demand for tech stocks. Advanced Micro Devices and Tesla, which are up by more than 3%, are among the biggest gainers in the NASDAQ index today.

NASDAQ has recently moved above the resistance at 18,600 – 18,700. In case NASDAQ stays above the 18,700 level, it will head towards the 19,000 level. RSI remains in the moderate territory, so there is enough room to gain additional momentum.

Dow Jones

Dow Jones remains stuck near the support at 39,000 – 39,100. The number of gainers is equal to the number of losers in the Dow Jones index today.

RSI is in the oversold territory, but Dow Jones failed to gain upside momentum despite bullish sentiment in the equity markets. In case Dow Jones declines below 39,000, it may gain material downside momentum and move towards the next support level, which is located in the 38,500 – 38,550 range.

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