NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 1.3% As Traders Sell Tech Stocks

SP500

SP500 pulls back as traders take profits after the release of PMI reports. Manufacturing PMI decreased from 49.6 in July to 48.0 in August, compared to analyst consensus of 49.6. Services PMI increased from 55.0 to 55.2, while analysts expected that it would decline to 54.0. Existing Home Sales grew by 1.3% month-over-month, in line with analyst expectations. It looks that traders decided to reduce their risks ahead of Powell’s comments at Jackson Hole Symposium. Treasury yields moved higher, which was bearish for major indices. The pullback is broad, and most market sectors are moving lower in today’s trading session. Tech stocks are among the biggest losers in the SP500 index today.

Currently, SP500 is trying to settle below the support at 5550 – 5570. In case this attempt is successful, it will head towards the next support level at 5400 – 5420.

NASDAQ

NASDAQ pulled back as traders rushed to sell tech stocks. Advanced Micro Devices, NVIDIA, and Micron were among the biggest losers in the NASDAQ index today. From a big picture point of view, the current pullback looks healthy as traders must take some profits off the table after the strong rebound from August lows.

A successful test of the support at 19,500 – 19,600 will push NASDAQ towards the next support level at 18,500 – 18,600.

Dow Jones

Dow Jones moved lower amid broad pullback in the equity markets. The pullback was led by Intel stock, which was down by 4.9% in today’s trading session.

The nearest support level for Dow Jones is located in the 40,500 – 40,600 range. If Dow Jones declines below this level, it will head towards the next support level at 39,700 – 39,800. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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