NASDAQ Index, SP500, Dow Jones Analysis – Major Indices Pull Back As Traders Focus On First Republic’s Problems

Key Insights

• SP500 pulled back towards the 4050 level as traders worried about a potential second wave of the banking crisis. 
• Microsoft’s strong earnings report provided support to NASDAQ. 
• Dow Jones declined towards the 33,300 level. 

SP500

SP500 remains under significant pressure amid recession worries. According to a recent Bloomberg report, FDIC may lower First Republic Bank‘s ratings, limiting its access to Fed’s lending facilities. Shares of First Republic Bank are down by about 35% in today’s trading session. The bank’s problems may trigger a second wave of the banking crisis, so it’s not surprising to see that traders are worried about First Republic’s fate.

If SP500 declines below the 4050 level, it will head towards the support at 4010. A move below 4010 will open the way to the test of the support at 3970.

R1:4070 – R2:4090 – R3:4115

S1:4050 – S2:4010 – S3:3970

NASDAQ

NASDAQ outperforms as tech stocks gain ground after the strong earnings report from Microsoft. The shares of Microsoft are up by 7% in today’s trading.

From a technical point of view, NASDAQ needs to stay above the support at 12,750 to have a chance to gain upside momentum in the near term. If NASDAQ gets back above the 12,900 level, it will head towards the resistance at 13,000.

R1:12,900 – R2:13,000 – R3:13,140

S1:12,750 – S2:12,650 – S3:12,500

Dow Jones

Dow Jones is losing ground amid a broad sell-off in equity markets. The strong performance of Microsoft shares did not provide support to the index today as most Dow Jones components found themselves under material pressure.

In case Dow Jones declines below the 33,300 level, it will head towards the support at 33,175. A successful test of this level will push Dow Jones towards the next support level at 33,000.

R1:33,500 – R2:33,700 – R3:33,850

S1:33,300 – S2:33,175 – S3:33,000

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