NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back Ahead Of FOMC Minutes

Key Insights

• SP500 did not manage to settle above the 4450 level. 
• NASDAQ pulled back as Treasury yields moved higher. 
• Dow Jones made an attempt to settle below the 34,250 level. 

SP500

SP500 pulled back as traders remained cautious ahead of FOMC Minutes. Today, traders had a chance to take a look at Factory Orders report for May. The report showed that Factory Orders increased by 0.3% on a month-over-month basis, while analysts expected that they would grow by 0.8%. Treasury yields have moved higher as traders continued to prepare for another rate hike at the next Fed meeting in July. Higher Treasury yields have put some pressure on major indices today.

From the technical point of view, SP500 did not manage to settle above the resistance at 4430 – 4450, although it has a decent chance to climb above this level in case the right catalysts emerge. On the support side, a move below the 4430 level will push SP500 towards the 50 MA at 4400.

NASDAQ

NASDAQ pulled back after an unsuccessful attempt to settle above the 15,300 level. Rising Treasury yields put pressure on the yield-sensitive tech stocks. In addition, profit-taking remains a major catalyst for NASDAQ as traders want to take some profits off the table after the strong rally in the first half of the year.

Taking a look at the daily chart, RSI is in the moderate territory, so there are no material obstacles for a move above the 15,300 level. However, NASDAQ will certainly need catalysts for a breakout.

Dow Jones

Dow Jones pulled back after facing strong resistance near 34,500 in recent trading sessions.

In case Dow Jones settles below the support at 34,200 – 34,250, it will head towards the 50 MA at 34,060. A move below the 50 MA will open the way to the test of the support area in the 33,785 – 33,875 range.

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