NASDAQ Index, SP500, Dow Jones Analysis – Dow Jones Remains Stuck At Key Level

Key Insights

• SP500 is gaining ground ahead of the weekend as traders stay bullish. 
• NASDAQ tested new highs as demand for tech stocks remained strong despite rising Treasury yields. 
• Dow Jones continued its attempts to settle above the key resistance level at 34,500 – 34,600.

SP500

SP500 gains ground as traders stay bullish ahead of the weekend. Today, traders focused on Michigan Consumer Sentiment report, which showed that Consumer Sentiment improved from 64.4 in June to 72.6 in July. Traders also focused on the reports from Citigroup, JPMorgan, and Wells Fargo. Citigroup declined by 3% as its earnings report showed a major drop in profit, while JPMorgan and Wells Fargo stocks showed little reaction to the reports. Energy stocks were among the worst performers in the index as traders reacted to the pullback in the oil markets.

Taking a look at the daily chart, SP500 remains overbought, so it will need significant catalysts to move towards the 4575 level. However, it should be noted that there no signs of profit-taking ahead of the weekend, which indicates that traders stay bullish.

NASDAQ

NASDAQ has also moved higher in today’s trading session despite rising Treasury yields. Demand for tech stocks remains strong, which is bullish for NASDAQ.

NASDAQ remains overbought so some traders may want to take profits off the table. However, the fear of missing out protects NASDAQ from the strong pullback as traders do not want to miss the AI hype train.

Dow Jones

Dow Jones made another attempt to settle above the resistance at 34.500 – 34,600 but failed to develop sufficient upside momentum.

The situation is not comfortable for the bulls as Dow Jones remains stuck near the key resistance level while SP500 and NASDAQ are testing yearly highs. In case SP500 and NASDAQ start to move lower due to profit-taking, Dow Jones may find itself under significant pressure.

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