NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Tests Historic Highs As Traders Stay Bullish

SP500

SP500 gains ground as traders react to FOMC Minutes. The report did not provide markets with strong catalysts. Most FOMC members voted for a 50 bps rate cut. The Fed sees that the U.S. economy is slowing down and highlights the progress in the fight against inflation. The Fed believes that the 50 bps rate cut should not be viewed as a sign indicating that the central bank would be more aggressive than previously expected. Treasury yields are moving higher, but this move does not put pressure on SP500. Most market segments are gaining ground in today’s trading session, although the yield-sensitive real estate and utilities stocks have found themselves under pressure.

SP500 climbed above the resistance at 5735 – 5750 and continues to move higher. A move above the 5800 level will provide SP500 with an opportunity to gain additional upside momentum. RSI remains in the moderate territory, which is bullish for SP500.

NASDAQ

NASDAQ climbed above the 20,200 level amid rising demand for tech stocks. Traders are not worried about rising yields and focus on the strength of the U.S. economy.

If NASDAQ stays above the 20,200 level, it will head towards the next resistance level, which is located in the 20,700 – 20,800 range. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

Dow Jones

Dow Jones tests new highs, supported by strong demand for financial and consumer stocks. Nike and Goldman Sachs are among the biggest gainers in the Dow Jones index today.

From the technical point of view, Dow Jones managed to get above the resistance at 42,100 – 42,200 and is trying to settle above the 42,500 level. In case this attempt is successful, Dow Jones will head towards the 43,000 level.

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