NASDAQ Index, SP500, Dow Jones Forecasts – Markets Dip On Profit-Taking Ahead of Weekend

S&P 500

The S&P 500 saw a slight decline of 0.27% on Friday, despite hitting a new all-time intraday high earlier in the session. The index has gained over 15% in the first half of 2024, driven by strong economic indicators like slowing inflation and robust consumer sentiment. Core PCE inflation rose just 0.1% in May, aligning with expectations and suggesting a positive outlook for the market.

The S&P 500 is trading below its 50-period SMA at 5,488.6, indicating bearish momentum. Resistance at 5,520 and 5,530.6 halted the earlier rally. The RSI at 46.87 shows weakening momentum. If the index drops below the current support at 5,440.80, it could decline further towards 5,330.4.

Nasdaq 100

The Nasdaq 100 edged down 0.27% on Friday, though it also reached a new all-time intraday high during the session. The index has surged approximately 20% year-to-date, fueled by investor enthusiasm for artificial intelligence. This tech-heavy index led the month-to-date rally in June with a 6% gain and advanced 1% over the past week, underscoring its robust performance compared to other indices.

The Nasdaq 100 is trading below its 50-period SMA at 19,789.6, signaling bearish momentum. Resistance at 19,995.8 and 20,111 halted the rally. Support is at 19,649.6 and 19,595.4. The RSI at 48.63 shows weakening momentum. A drop below 19,758.6 could lead to further declines toward 19,595.4. Watch these key levels closely.

Dow Jones Industrial Average

The Dow Jones Industrial Average declined by 0.39% or 153 points on Friday, underperforming relative to the S&P 500 and Nasdaq 100. It has gained just 4% year-to-date, hindered by a more than 1% pullback in the second quarter. Despite this, the Dow rose around 1% in June and 0.5% for the week, indicating some resilience. Nike’s significant drop following revised guidance also impacted the index.

The Dow Jones Industrial Average is trading below its 50-period SMA at 39,111.49, indicating bearish momentum. Resistance at 39,702.40 and 39,805.97 halted the recent rally. Support is at 39,006.71 and 38,502.34. The RSI at 41.39 shows weakening momentum. A drop below 39,006.71 could lead to further declines towards 38,502.34. Monitor these key levels closely.