NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives 1.6% As Tech Stocks Retreat

Key Insights

• SP500 moved towards the 4450 level as tech stocks suffered a sell-off. 
• The tech-heavy NASDAQ found itself under strong pressure.
• Dow Jones pulled back towards the support in the 34,500 – 34,600 range.

SP500

SP500 found itself under strong pressure amid a strong sell-off in tech stocks. Today, traders had a chance to take a look at the Michigan Consumer Sentiment report, which showed that Consumer Sentiment decreased from 69.5 in August to 67.7 in September. SP500 was moving lower ahead of the report, which served as an additional negative catalyst. From a big picture point of view, it looks that traders are not sure whether SP500 has enough catalysts to test the strong resistance near the yearly highs at 4600, so they prefer to take some profits off the table.

The nearest support level for SP500 is located in the 4430 – 4450 range. In case SP500 moves below the 4430 level, it will head towards the next support at 4335 – 4350.

NASDAQ

NASDAQ is under strong pressure as traders sell tech stocks. The pullback is broad, and most NASDAQ components are moving lower in today’s trading session.

RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum. A successful test of the support at 15,200 – 15,300 will push NASDAQ towards the next support level, which is located in the 14,560 – 14,680 range.

Dow Jones

Dow Jones declined towards the support at 34,500 – 34,600 amid a broad pullback in the equity markets.

In case Dow Jones manages to settle below the 34,500 level, it will head towards the support in the 33,600 – 33,700 range. It should be noted that Dow Jones faced strong resistance near 35,000, so the index will need significant catalysts to move above this level in case it gains upside momentum after the pullback.

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