NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Software Stocks Rebound
It should be noted that the Strait of Hormuz is blocked by both Iran and U.S., so the situation in the physical market has not improved. Iran threatened to strike ports in the region due to the naval blockade. At this point, the country has not initiated attacks, and the fragile ceasefire holds.
Today, traders also had a chance to take a look at the Existing Home Sales report for March. The report indicated that Existing Home Sales decreased by -3.6% month-over-month, compared to analyst forecast of -2.0%. The previous report was revised from +1.7% to +2.7%.
Most market sectors gained ground as traders bet on de-escalation in the Middle East. Utilities and consumer defensive stocks declined amid falling demand for safe-haven assets.
Currently, SP500 is trying to settle above the resistance level at 6850 – 6860. In case this attempt is successful, SP500 will move towards the next resistance level, which is located in the 6910 – 6920 range. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term.