NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Remains Under Pressure

Key Insights

• SP500 is testing support in the 4335 – 4350 range. 
• NASDAQ remains under pressure as big tech pulls back. 
• Dow Jones tries to settle back above the 33,785 level.

SP500

SP500 settled in the 4335 – 4350 support area as traders reacted to the better-than-expected Dallas Fed Manufacturing Index report. Treasury yields have been mostly flat today as traders waited for additional catalysts. Markets expect that the Fed will raise the federal funds rate by 25 bps at the next meeting, and some traders fear that an additional rate hike would put too much pressure on the economy. Profit-taking is another important catalyst for SP500 as traders continue to take profits after the strong rally from March lows.

From the technical point of view, a move below the 4335 level will signal that the pullback will continue. In this case, SP500 will move towards the next support area in the 4290 – 4305 range. On the upside, SP500 needs to climb above the 50 MA at 4385 to have a chance to gain sustainable momentum in the near term.

NASDAQ

NASDAQ pulls back as traders take profits in the high-flying tech stocks. Tesla, NVIDIA, Meta, and Alphabet are among the main losers in the NASDAQ index today.

NASDAQ is heading towards the nearest material support level in the 14,550 – 14,680 range. RSI remains in the moderate territory, so NASDAQ has a good chance to gain additional downside momentum.

Dow Jones

Dow Jones is trying to settle back above the 33,785 level while SP500 and NASDAQ remain under pressure.

Dow Jones needs to climb above the resistance in the 33,785 – 33,875 range to break the current trend. In this case, Dow Jones will head towards the next resistance in the 34,200 – 34,250 range.

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