NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Lower Amid Strong Pullback In Bond Markets
President Trump has recently threatened Iran with “big hit” in case the country did not agree to a deal. Trump noted that he was ready to provide Iran with a limited period of time to get the deal done. As a result, oil traders have started to prepare for a potential restart of the military operation against Iran. Rising oil prices reduced demand for risk assets and put some pressure on SP500.
Today, traders also had a chance to take a look at the Pending Home Sales report for April. The report indicated that Pending Home Sales increased by +1.4% month-over-month, compared to analyst consensus of +1%. On a year-over-year basis, Pending Home Sales increased by +3.2%.
Not surprisingly, energy stocks were among the biggest gainers today. Healthcare stocks have also managed to gain momentum. Basic materials stocks found themselves under pressure as traders reacted to the sell-off in precious metals markets.
Currently, SP500 is moving towards the support level at 7350 – 7360. In case SP500 manages to settle below the 7350 level, it will head towards the next support, which is located in the 7250 – 7260 range.
On the upside, SP500 needs to climb above the 50 MA at 7411 to gain upside momentum in the near term. In this case, SP500 will get to the test of the resistance level at 7425 – 7435.