NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows

SP500

SP500 managed to rebound from session lows as traders reacted to inflation data. Inflation Rate increased from 2.9% in December to 3% in January, compared to analyst forecast of 2.9%. Core Inflation Rate grew from 3.2% to 3.3%, while analysts expected that it would drop to 3.1%. Higher-than-expected inflation boosted Treasury yields. The yield of 2-year Treasuries moved above the 4.36% level, while the yield of 10-year Treasuries settled above 4.63%. Interestingly, traders ignored rising yields and have started to buy the dip. Consumer cyclical and consumer defensive stocks were among the leaders in the SP500 today. Energy stocks found themselves under strong pressure as traders reacted to the sell-off in the oil markets.

In case SP500 stays above the 6050 level, it will move towards the nearest resistance level, which is located in the 6090 – 6100 range.

NASDAQ

NASDAQ rebounded from session lows, supported by the strong rally in Intel stock. Intel shares are up by 6.1% amid rumors about a potential tie-up with Taiwan Semiconductor Manufacturing Company.

If NASDAQ climbs above the 21,800 level, it will head towards the nearest resistance level at 21,900 – 21,950. A move above the 21,950 level will provide NASDAQ with a chance to gain strong upside momentum.

Dow Jones

Dow Jones is losing ground as most stocks in the index are moving lower after the release of inflation data. Home Depot and Caterpillar were the worst performers in the Dow Jones index today.

The nearest resistance level for Dow Jones is located in the 44,400 – 44,500 range. In case Dow Jones settles above this level, it will head towards the next resistance at 44,900 – 45,000. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

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