NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Traders Buy The Dip

SP500

SP500 gains ground as traders buy the dip. The rally is led by tech stocks, which have been under strong pressure during the recent sell-off. The move is broad, and all market segments are moving higher. Even energy stocks managed to gain strong momentum in today’s trading session despite the pullback in the oil markets. From a big picture point of view, the markets have calmed down. Treasury yields moved away from their recent lows, and U.S. dollar rebounded against a broad basket of currencies. Traders expect that Fed will start cutting rates in September, but they do not expect that Fed will need an emergency meeting to provide additional support to the economy.

In case SP500 manages to settle above the resistance at 5310 – 5325, it will move towards the 50 MA at 5410. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If SP500 climbs above the 50 MA, it will head towards the resistance at 5480 – 5500.

NASDAQ

NASDAQ rallies as tech stocks rebound. Traders have used the recent panic as an opportunity to increase their long positions at attractive levels. NVIDIA, which is up by 6.7%, is among the biggest gainers in the NASDAQ index today.

The nearest resistance level for NASDAQ is located in the 18,500 – 18,600 range. If NASDAQ moves above the 18,600 level, it will head towards the next resistance at 19,500 – 19,600.

Dow Jones

Dow Jones gains ground amid broad rally in the equity markets. The appetite for risk has grown, and traders buy stocks from all market sectors.

From the technical point of view, Dow Jones has recently managed to climb above the resistance at 39,000 – 39,100. If Dow Jones stays above 39,100, it will move towards the next resistance at 39,700 – 39,800.

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