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

SP500

SP500 attempts to rebound after the sell-off, which was triggered by the release of U.S. job market data. Non Farm Payrolls report showed that U.S. economy added 256,000 jobs in December, compared to analyst forecast of 160,000. Unemployment Rate declined from 4.2% to 4.1%, while analysts expected that it would remain unchanged at 4.2%. Treasury yields rallied as bond traders reacted to strong reports. The yield of 30-year Treasuries made an attempt to settle above the psychologically important 5.00% level. Most sectors found themselves under pressure in today’s trading session. However, energy stocks gained upside momentum as traders focused on the strong rally in oil and natural gas markets. Cold weather and new sanctions on the Russian oil industry served as bullish catalysts for energy stocks.

In case SP500 manages to settle back above the 5880 level, it will move towards the nearest resistance, which is located in the 5910 – 5920 range.

NASDAQ

NASDAQ has also moved away from session lows as some traders used the strong pullback as an opportunity to increase their long positions. Chip stocks like ON Semiconductor, Advanced Micro Devices and Intel were among the biggest losers in the NASDAQ index today.

If NASDAQ climbs back above the 21,000 level, it will move towards the resistance level at 21,150 – 22,000. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones is trying to settle back above the support at 42,100 – 42,200 as the market calms down after the sell-off. Chevron was the best performer in the Dow Jones index as demand for energy stocks increased.

A move above the 42,200 level will push Dow Jones towards the 50 MA at 42,586. In case Dow Jones climbs above the 50 MA, it will get to the test of the resistance at 42,700 – 42,800.

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