NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally After Jobs Data

SP500

SP500 rallied as traders reacted to the better-than-expected Initial Jobless Claims report. The report indicated that 233,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 240,000. The previous reading was revised from 249,000 to 250,000. It’s been a while since Initial Jobless Claims report has last served as a major catalyst for the market. In this case, traders rushed to buy stocks because the report showed that the situation in the job market remained under control. The recent panic was triggered by the weak Unemployment Rate report. Traders feared that the economy was under strong pressure. However, the Initial Jobless Claims report showed that there was no slowdown, so markets are moving towards the levels that were seen before the Unemployment Rate and Non Farm Payrolls reports.

Currently, SP500 is trying to settle above the resistance at 5310 – 5325. In case this attempt is successful, it will move towards the next resistance level at 5400 – 5420.

NASDAQ

NASDAQ rallied as demand for tech stocks increased after the release of the encouraging job market data. Chip stocks like NVIDIA, Intel, and Advanced Micro Devices are among the biggest gainers in the NASDAQ index today.

In case NASDAQ manages to settle above the resistance at 18,500 – 18,600, it will move towards the next resistance at 19,500 – 19,600.

Dow Jones

Dow Jones moved towards the 39,500 level amid broad rally in the equity markets. Intel was the biggest gainer in the Dow Jones index today. The stock has finally started to rebound after the major sell-off, which was triggered by the disappointing earnings report.

From the technical point of view, Dow Jones is moving towards the nearest resistance level, which is located in the 39,700 – 39,800 range. RSI is in the moderate territory, so there is plenty of 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.