NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound After Sell-Off

SP500

SP500 gains ground as U.S. delays tariffs on Mexico after a border deal. The U.S. has not reached any deal with Canada yet, although Donald Trump has already noted that he would speak with Canada’s Trudeau later today. Traders also had a chance to take a look at the ISM Manufacturing PMI report for January. The report indicated that ISM Manufacturing PMI increased from 49.3 in December to 50.9 in January, compared to analyst forecast of 49.8. S&P Global Manufacturing PMI improved from 49.4 to 51.2, while analysts expected that it would increase to 50.1. Numbers above 50 show expansion. Overall, the reports showed that U.S. manufacturing activity has finally moved back into the positive territory. Consumer defensive stocks were among the leaders today as demand for safe-haven assets increased.

Currently, SP500 is trying to settle above the resistance at 6000 – 6010. In case this attempt is successful, it will head towards the 50 MA at 6054.

NASDAQ

NASDAQ has also moved away from session lows as traders reacted to Donald Trump’s comments on tariffs. Tesla, Apple, and NVIDIA were among the biggest losers in the NASDAQ index today as traders worried about the trade war with China.

NASDAQ attempts to settle above the 21,400 level. In case this attempt is successful, it will test the 50 MA at 21,487. A move above the 50 MA will push NASDAQ towards the resistance at 21,550 – 21,600.

Dow Jones

Dow Jones tests resistance at 44,400 – 44,500 as the rebound continues. Procter & Gamble, which is up by 1.6%, is the biggest gainer in the Dow Jones index today.

A successful test of the resistance at 44,400 – 44,500 will push Dow Jones towards the next resistance, which is located in the 44,900 – 45,000 range. RSI is in the moderate territory, and there is enough room to gain momentum in the near term.

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