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

SP500

SP500 managed to rebound from session lows despite the disappointing GDP Growth Rate report, which showed that GDP Growth Rate was -0.3% in the first quarter. The report missed analyst estimates of +0.3%. Today, traders also focused on the PCE Price Index report, which indicated that PCE Price Index increased by +2.3% year-over-year in March, compared to analyst forecast of +2.2%. Personal Income grew by +0.5% month-over-month in March, while Personal Spending increased by +0.7%. Both reports exceeded analyst expectations. ADP Employment Change report showed that private businesses added 62,000 jobs in April, compared to analyst forecast of 115,000. The weak GDP Growth Rate and ADP Employment Change reports indicated that the U.S. economy has found itself under pressure. However, stock traders have started to buy the dip. It looks that traders are ready to bet that Fed will be forced to provide material support to the economy and cut rates despite inflation risks.

SP500 did not manage to settle below the support at 5490 – 5500 and moved back above the 5500 level. In case SP500 settles above 5550, it will head towards the nearest resistance level at 5590 – 6000.

NASDAQ

NASDAQ received support in the 19,000 – 19,050 range and rebounded towards the resistance at 19,500 – 19,550.

In case NASDAQ manages to settle back above 19,550, it will head towards the next resistance at 19,950 – 20,000. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones has also managed to rebound from session lows as traders were ready to buy the dip despite recession worries.

If Dow Jones climbs above the 40,500 level, it will head towards the resistance at 40,900 – 41,000. On the support side, a move below the 40,000 level will push Dow Jones towards the 50 MA at 39,649.

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