NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs After FOMC Minutes

SP500

SP500 tested new highs after the release of FOMC Minutes. The Minutes showed that Fed was prepared to take time to see the impact of trade wars and other recent developments. It looks that traders believed that Minutes would be more hawkish, so they rushed to buy stocks after the release of the report. Today, traders had a chance to take a look at the Building Permits report for January. The report indicated that Building Permits increased by +0.1% on a month-over-month basis, compared to analyst consensus of -0.8%. Housing Starts declined by -9.8%, compared to analyst forecast of -9.0%. Healthcare and consumer defensive stocks are among the leaders in the SP500. Basic materials stocks found themselves under pressure amid pullback in precious metals markets.

Currently, SP500 is trying to settle above the resistance at 6135 – 6140. In case this attempt is successful, SP500 will head towards the 6200 level. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

NASDAQ

NASDAQ moved higher as demand for chip stocks remained strong. Microchip Technology, which was up by 10.8%, was the biggest gainer in the NASDAQ index today. The stock rallied after the company launched AI-powered coding assistant.

From the technical point of view, NASDAQ continues its attempts to settle above the resistance at 22,200 – 22,250. If NASDAQ climbs above the 22,250 level, it will head towards the 22,500 level.

Dow Jones

Dow Jones was mostly flat as traders reacted to economic reports and FOMC Minutes. Johnson & Jonhson, which was up by 1.7%, was the biggest gainer in the Dow Jones index today.

If Dow Jones stays above the 44,500 level, it will move towards the nearest resistance level, which is located in the 44,900 – 45,000 range.

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