NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Pull Back From Historic Highs

SP500

SP500 pulls back as traders take some profits off the table ahead of the weekend. Treasury yields moved lower, but this move did not provide support to major indices in today’s trading session. The pullback is broad, and most market segments are moving lower. Lululemon, which is down by 15%, is the worst performer in SP500 today. The stock gained strong downside momentum as traders reacted to the company’s earnings report. Lululemon beat analyst estimates on both earnings and revenue but warned about the slowdown in U.S. sales. Nike , which is down by 6.5%, has also found itself under pressure after the release of the earnings report. Traders focused on Nike’s disappointing guidance.

SP500 faced resistance in the 5260 – 5270 range and moved below the 5250 level. In case SP500 stays below 5250, it may gain additional downside momentum and head towards the nearest support, which is located in the 5180 – 5190 range.

NASDAQ

NASDAQ continued its attempts to settle above the key resistance at 18,350 – 18,400 as demand for tech stocks remained strong. NVIDIA and Alphabet were the biggest gainers in the NASDAQ index today.

NASDAQ needs to settle above 18,400 to gain additonal upside momentum. If NASDAQ fails to climb above this level in the upcoming sessions, traders may decide to take profits and push NASDAQ towards the nearest support at 18,000 – 18,050.

Dow Jones

Dow Jones is moving lower due to the strong pullback in Nike stock. It should be noted that most Dow Jones components are moving lower as traders take profits near historic highs.

In case Dow Jones settles below the 39,500 level, it will head towards the nearest support level at 39,250 – 39,300. On the upside, the nearest resistance is located at the recent highs at 39,800 – 39,850.

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