The macroeconomic outlook cannot be seen as attractive considering the different events that have been taking place during the first quarter of 2022. Although the post-covid stage was already ceasing and allowing recovery in the different markets, the start of a war between Russia and Ukraine so that the markets crashed once again; a fact that can be seen very clearly in the main US stock market indices.
In this sense, the Nasdaq; The S&P 500 and the Dow Jones Industrial Average have led to the decline. However, despite this, it can be an excellent investment opportunity in the long term, but for now, let’s study how the market could act in the coming weeks.
Nasdaq
The technology sector has been one of the most affected after the latest decisions made by the president of Russia against Ukraine; For example, there is the Nasdaq index. However, the fact that the support we marked at 13 thousand points has been reached is quite positive, since a slight recovery began from there.
Even so, this does not mean that the possibilities of a bearish continuation should be ruled out. Above all, because the last close was made in a resistance, which if rejected, which would be as much as possible, could take the Nasdaq to new lows.
S&P 500 Index
One of the most representative stock indices of the current market landscape is the S&P 500, and it remains bearish; in the same way as the Nasdaq. Also, they recently announced that they will be delisting some of the Russian stocks from their indices. Although it could be considered positive, considering that they are on the downside, the decision will not determine their long-term trajectory; especially if Russia’s offensive against Ukraine is extended.
The bottom chart shows in detail the maximum reached in 2022 and the closest support; located at 4,159 points. This serves as a reference to evaluate what could rise if it recovers, in addition, it is also useful, since a slight recovery is noticeable after a losing streak; If it continues to rise today, the resistance is located at 4,300 points could be tested.
Dow Jones Industrial Average
As far as the Dow Jones is concerned, we can say that it is still handed in hand with the previous stock market indices; especially with the Nasdaq. However, for now, we can say that it is the one that is most likely to make a change in trend in the coming days.
As seen in the chart below, yesterday’s close at 33,286 points was made at resistance. Therefore, should the major companies weighted by the index open higher today, we are certain to see a rise in the score; some of those that could prevent a further drop in the Dow Jones are ExxonMobil and Chevron Corporation, but this will have to be evaluated in more detail in the coming hours.
Conclution
Even though geopolitical decisions have not gone unnoticed in the stock market, and are highly considered by investors when buying/selling, we can notice in all 3 stock indices that Wednesday’s closes were higher; the Nasdaq 100 was up +3.58%, the S&P 500 was up +2.57% and the Dow was up +2.0%.
However, investors now have their eyes on the next possible events that could affect the market. Among these events, we have the talks between the foreign ministers of Russia and Ukraine, in Turkey, in addition to today’s US inflation data.
