NASDAQ Index, SP500, Dow Jones Analysis – Traders Take Some Profits Off The Table Ahead Of Fed Decision

Key Insights

• SP500 did not manage to settle above 4575 and pulled back. 
• NASDAQ is moving lower as Microsoft is down by 4.5%. 
• Dow Jones is mostly flat as traders wait for the Fed decision. 

SP500

SP500 pulls back ahead of the Fed Interest Rate Decision. The Fed is expected to raise the federal funds rate by 25 bps. As usual, traders will pay attention to Powell’s comments. Powell may signal that the rate hike cycle is over, which will be bullish for stocks. At the same time, the recent economic data was strong, so Powell may indicate that Fed could raise the federal funds rate by another 25 bps, which will likely put more pressure on stocks.

SP500 remains stuck below the resistance in the 4575 – 4600 range. Traders should note that technical factors will take a back seat when Powell starts to speak.

NASDAQ

NASDAQ is moving lower as traders take some profits off the table ahead of the Fed decision. The strong pullback in Microsoft shares, which is down by 4.5% after the earnings report, put additional pressure on NASDAQ.

The nearest support level for NASDAQ is located in the 15,200 – 15,300 range. In case NASDAQ settles below 15,200, it will head towards the next support level at 14,560 – 14,680.

Dow Jones

Dow Jones continues its attempts to settle above the resistance at 35,400 – 35,550. Traders are not ready for big moves ahead of the Fed decision.

From the technical point of view, RSI settled back in the moderate territory, which is bullish for Dow Jones. However, today’s dynamics will depend on the market’s reaction to Powell’s comments.

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