NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Electronic Arts Crashes 17.7%

SP500

SP500 tested historic highs as traders focused on Donald Trump’s speech at Davos. He said that he would ask Saudi Arabia to push oil prices lower, and then use low energy prices as an opportunity to cut interest rates. U.S. dollar moved lower as traders reacted to Trump’s words about potential rate cuts. However, 10-year Treasuries yields moved higher, and it remains to be seen whether bond traders are ready to bet that Fed would be dovish in the near term. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report showed that 223,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 220,000. Most market sectors moved higher in today’s trading session. Utilities and healthcare stocks were among the best performers in the SP500 index today. Meanwhile, tech stocks found themselves under pressure amid profit-taking.

In case SP500 stays above the psychologically important 6100 level, it will gain additional momentum and move towards the 6150 level.

NASDAQ

NASDAQ is losing some ground as tech stocks pull back. Electronic Arts, which was down by 17.7%, was the worst performer in the NASDAQ index today. The stock suffered a strong sell-off after the company slashed its revenue forecast due to weak demand for soccer and Dragon Age games.

In case NASDAQ manages to settle back above the 21,800 level, it will move towards the nearest resistance, which is located in the 22,050 – 22,100 range.

Dow Jones

Dow Jones tested new highs amid strong demand for industrials stocks. Caterpillar and Boeing were the biggest gainers in the Dow Jones index today.

If Dow Jones settles above the resistance at 44,400 – 44,500, it will move towards the next resistance level, which is located in the 44,900 – 45,000 range.

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