NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Test Historic Highs In Holiday-Shortened Session

SP500

SP500 tested historic highs as traders reacted to the weak ISM Services PMI report, which showed that Services PMI declined from 53.8 in May to 48.8 in June. Numbers below 50 show contraction. Today, traders also had a chance to take a look at the final reading of S&P Global Services PMI, which indicated that Services PMI increased from 54.8 in May to 55.3 in June. This report did not have a material impact on market dynamics as traders focused on ISM Services PMI report. Treasury yields moved lower as bond traders bet on a less hawkish Fed. The yield of 2-year Treasuries pulled back towards the 4.70% level, while the yield of 10-year Treasuries settled near 4.35%. FOMC Minutes showed that Fed wanted to see more progress on inflation before starting the rate cut cycle.

RSI is close to the overbought territory, but there is enough room to gain additional momentum. A move above the 5550 level will open the way to the test of the 5600 level.

NASDAQ

NASDAQ has also tested new highs as demand for tech stocks remained strong. Tesla and NVIDIA were the biggest gainers in the NASDAQ index today.

From the technical point of view, NASDAQ managed to settle above the resistance at 20,000 – 20,100 and looks ready to gain additional upside momentum.

Dow Jones

Dow Jones was mostly flat as traders remained focused on tech stocks. Salesforce, which was up by 1.8%, was the best performer in the Dow Jones index today.

In case Dow Jones manages to settle above 39,400, it will head towards the nearest resistance at 39,700 – 39,800. On the support side, a move below the 50 MA at 39,215 will push Dow Jones towards the support level, which is located in the 39,000 – 39,100 range.

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