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SP500 tests new lows as traders focus on the developments in the Middle East. Israel has reportedly started its ground operation against Hamas in Gaza. Israel’s chief military spokesperson said that the country’s ground forces were stepping up operations and that attacks in Gaza intensified. Traders are waiting for the reaction of other countries in the region. Meanwhile, oil prices are up by roughly2%, while gold managed to climb above the $2000 level. Investors are trying to find safe-haven assets, and the sell-off may intensify in the last hour of trading.
Currently, SP500 is testing the support at 4100 – 4120. RSI has recently moved into the oversold territory, but there is enough room to gain additional downside momentum.
NASDAQ remains in the positive territory but is quickly moving lower amid geopolitical uncertainty. The strong performance of Intel and Amazon shares provided significant support to NASDAQ today, but geopolitical news may push the index into the negative territory.
If NASDAQ settles below the support at 14,200 – 14,300, it will head towards the next support level at 13,800 – 13,900.
Dow Jones
Dow Jones is under strong pressure as the appetite for risk declines amid rising tensions in the Middle East. Chevron is down by 6% as traders react to the disappointing earnings report. JPMorgan has also found itself under strong pressure as CEO Jamie Dimon would sell one million shares of the bank.
A move below the support at 33,600 – 33,700 opens the way to the test of the next support level, which is located in the 31,600 – 31,800 range.
For a look at all of today’s economic events, check out our economic calendar.
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