NASDAQ Index, SP500, Dow Jones Analysis – Major Indices Barely Move As Traders Wait For Catalysts

Key Insights

• SP500 remained stuck below the 4600 level. 
• NASDAQ was flat in quiet trading. 
• Dow Jones did not manage to settle above the 35,500 level. 

SP500

SP500 is mostly flat in today’s trading session as bulls search for catalysts that could push the index above the 4600 level. Today, traders focused on Dallas Fed Manufacturing Index and Chicago PMI reports. Both reports missed analyst expectations but had no material impact on SP500 dynamics. Energy stocks were among the best performers in SP500 as oil prices tested new highs. Major indices are calm at the end of the month, and it looks that traders are not ready for big moves as they are satisfied with their performance in July.

From the technical point of view, SP500 must settle above the key resistance at 4600 to gain additional upside momentum. In case SP500 fails to climb above the 4600 level in the upcoming trading sessions, traders may start to take profits off the table.

NASDAQ

NASDAQ is flat in calm trading. The index has barely moved today. Treasury yields moved lower, but this move was not strong enough to provide any support to the yield-sensitive tech stocks.

NASDAQ has recently made several attempts to settle above the 15,800 level, but these attempts yielded no results. In case NASDAQ climbs above 15,800, it will get to the test of the resistance in the 15,900 – 16,000 range.

Dow Jones

Dow Jones remains stuck near the 35,500 level as traders wait for additional catalysts. Chevron was the only notable gainer in the Dow Jones index today. Among the losers, Johnson & Johnson declined by 4% as the second bankruptcy plan of its subsidiary was rejected. The company wanted to end the talc litigation, but this catalyst will remain in play in the near term.

RSI is in the moderate territory, so Dow Jones will have a good chance to gain strong upside momentum if it manages to settle above the 35,550 level.

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