NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats Amid Slowdown Fears

SP500

SP500 is losing ground as traders react to the weaker-than-expected ADP Employment Change report. The report indicated that private businesses added 99,000 jobs in August, compared to analyst consensus of 145,000. Initial Jobless Claims decreased from 232,000 to 227,000, compared to analyst forecast of 230,000. Today, traders also had a chance to take a look at ISM Services PMI report, which showed that ISM Services PMI increased from 51.1 in July to 51.5 in August. The final reading of the S&P Global Services PMI indicated that Services PMI improved from 55.2 to 55.7. The services sector remains in good shape, but Fed will likely focus on the situation in the job market. The recent JOLTs report missed analyst expectations, and the ADP report has missed them as well, which means that economy may be slowing down.

If SP500 manages to settle below the 5500 level, it will head towards the nearest support, which is located in the 5400 – 5420 range.

NASDAQ

NASDAQ moved higher in choppy trading. Tech stocks have managed to gain some ground today, but it remains to be seen whether traders are ready to start buying the sector aggressively.

The technical picture remains unchanged as NASDAQ index is stuck in a tight range. If NASDAQ declines below the 18,800 level, it will head towards the support at 18,500 – 18,600.

Dow Jones

Dow Jones pulls back as traders worry about the potential slowdown of the economy. Most stocks in the Dow Jones index are losing ground in today’s trading session.

RSI remains in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge. A successful test of the nearest support at 40,500 – 40,600 will open the way to the test of the next support level at 39,700 – 39,800.

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