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

SP500

SP500 gains ground as traders use the recent pullback as an opportunity to increase their long positions at attractive levels. It is not clear whether Biden’s decision to drop out of the presidential race served as an additional positive catalyst for the markets. Treasury yields are moving higher, but traders are not worried about rising yields. The rebound is broad, and most market segments gained upside momentum in today’s trading session. It should be noted that energy stocks failed to gain momentum despite the strong rebound in natural gas markets as traders focused on the pullback in the oil markets.

The nearest resistance level for SP500 is located in the 5590 – 5600 range. A move above the 5600 level will open the way to the test of the next resistance at 5670 – 5680.

NASDAQ

NASDAQ rallies amid rising demand for tech stocks. The continuation of the sell-off in Crowdstrike shares did not put any pressure on NASDAQ index. Crowdstrike remains under strong pressure as traders bet that the company would face problems after the global IT outage which was caused by the firm’s software.

From the technical point of view, NASDAQ is moving towards the resistance at 20,000 – 20,100. If NASDAQ manages to settle above the 20,100 level, it will head towards the next resistance at 20,700 – 20,800.

Dow Jones

Dow Jones found support in the 40,300 – 40,400 range and is trying to gain additional upside momentum. However, the strong pullback in Verizon shares has put some pressure on the index. Verizon is down by 6.3% as traders react to the company’s earnings report. Verizon beat analyst estimates on earnings but missed them on revenue.

If Dow Jones climbs above the 40,500 level, it will have a chance to gain additional momentum and move towards the resistance at the recent highs at 41,300 – 41,400.

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