NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Tesla Soars 14.5%

SP500

SP500 rallied as traders reacted to the results of U.S. elections. The decisive victory of Donald Trump provided significant support to equity markets. Traders bet that his policy would be good for businesses. Financial and industrials stocks were among the biggest gainers in the SP500 today. Meanwhile, real estate stocks have found themselves under pressure as traders focused on the strong moves in Treasury yields. The yield of 2-year Treasuries climbed above the 4.29% level, while the yield of 10-year Treasuries moved above 4.45%. Tomorrow, Fed will announce its Interest Rate Decision. Traders believe that Fed will be more hawkish than previously expected but keep buying stocks as Trump’s presidency is a strong bullish catalyst.

SP500 settled above the resistance at 5880 – 5890 and is trying to settle above the 5930 level. In case this attempt is successful, SP500 will head towards the psychologically important 6000 level.

NASDAQ

NASDAQ tests resistance at 20,700 – 20,800 amid strong rally in the equity markets. Tesla, which is up by 14.5%, is the biggest gainer in the NASDAQ index today. The stock gained strong upside momentum due to Elon Musk’s role in Donald Trump’s campaign.

A successful test of the resistance at 20,700 – 20,800 will push NASDAQ towards the 21,000 level.

Dow Jones

Dow Jones tests historic highs as traders focus on Trump’s victory. The huge rally in Goldman Sachs and JPMorgan stocks provided significant support to Dow Jones.

From the technical point of view, Dow Jones settled above the resistance at 42,200 – 43,300 and continues to move higher. RSI is in the extremely overbought territory, so the risks of a pullback are increasing. It should be noted that high RSI is typical for a news-driven rally, so it remains to be seen whether we will see a strong pullback in the near term.

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