NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs

Key Insights

• SP500 moved above the key resistance at 4810 – 4820 as traders rushed to buy tech stocks. 
• NASDAQ rallied as NVIDIA tested new highs amid strong demand for AI-related stocks. 
• Dow Jones is trying to settle above the resistance at 37,750 – 37,800.

SP500

SP500 tests historic highs, boosted by the strong performance of tech stocks. Today, traders also had a chance to take a look at the preliminary reading of Michigan Consumer Sentiment report, which showed that Consumer Sentiment improved from 69.7 in December to 78.8 in January. Existing Homes Sales declined by 1% month-over-month in December, compared to analyst consensus of +0.3%. Treasury yields were moving higher as traders reduced bets on a dovish Fed, and the yield of 2-year Treasuries settled above the 4.40% level. Traders ignored rising Treasury yields as they remained focused on AI-related stocks.

From the technical point of view, SP500 climbed above the key resistance at 4810 – 4820 and moved into unchartered territory. RSI settled in the overbought territory, but SP500 has just moved above the key level so it remains to be seen whether traders want to take some profits off the table.

NASDAQ

NASDAQ has also tested new highs amid rising demand for tech stocks. The strong rally in NVIDIA stock continued. Demand for AI-related products is extremely strong, so traders rush to buy the shares of the leading chip company.

RSI has not reached the extremely overbought territory, so there is enough room to gain additional upside momentum in the near term.

Dow Jones

Dow Jones gained ground, boosted by strong demand for Intel, IBM, and Salesforce stocks.

Interestingly, RSI remains in the moderate territory, so Dow Jones has a good chance to settle above the resistance at 37,750 – 37,800.

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