NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back Ahead Of Tomorrow’s Inflation Report

Key Insights

• SP500 failed to settle above the 4150 level and pulled back. 
• NASDAQ declined as traders took some profits off the table near yearly highs. 
• Dow Jones managed to rebound from session lows. 

SP500

SP500 pulls back after an unsuccessful attempt to settle above the 4150 level. Traders cut risks ahead of the key CPI reports, which will be released tomorrow. Analysts expect that Inflation Rate will remain unchanced at 5%, while Core Inflation Rate will decline from 5.6% to 5.5%.

In case SP500 settles below the support at 4115, it will head towards the next support level at 4090. A move below this level will open the way to the test of the support at 4070.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4070

NASDAQ

NASDAQ pulled back as tech stocks found themselves under pressure amid rising Treasury yields. PayPal, which is down by 12% today, is the worst performer in the NASDAQ index today. The stock found itself under pressure after the release of the earnings report as traders focused on the disappointing margin outlook.

The nearest support level for NASDAQ is located at 13,140. If NASDAQ declines below this level, it will move towards the next support level at 13,000. A move below 13,000 will push NASDAQ towards the support at 12,900.

R1:13,250 – R2:13,400 – R3:13,550

S1:13,140 – S2:13,000 – S3:12,900

Dow Jones

Dow Jones managed to rebound from session lows, but it remains to be seen whether the index will be able to gain additional upside momentum ahead of tomorrow’s inflation reports.

A move above the 33,700 level will push Dow Jones towards the resistance at 33,850. If Dow Jones climbs above this level, it will head towards the next resistance at 34,000.

R1:33,700 – R2:33,850 – R3:34,000

S1:33,500 – S2:33,300 – S3:33,150

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