NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As NVIDIA Drops 6.2%

SP500

SP500 pulled back from session highs as traders took some profits off the table near historic highs. Today, traders focused on the second estimate of the second-quarter GDP Growth Rate report. The report indicated that GDP Growth Rate was 3%, compared to analyst consensus of 2.8%. The strong report has initially provided material support to stocks, but it looks that some traders used it as an opportunity to take profits at attractive levels. Pending Home Sales declined by 5.5% month-over-month in July, compared to analyst forecast of +0.4%. Initial Jobless Claims decreased from 233,000 (revised from 232,000) to 231,000, mostly in line with analyst expectations. From a big picture point of view, SP500 needs strong upside catalysts to test new highs as traders are focused on profit-taking.

The nearest support level for SP500 is located in the 5550 – 5570 range. In case SP500 manages to settle below the 5550 level, it will head towards the next support level at 5400 – 5420.

NASDAQ

NASDAQ moved lower as NVIDIA  stock declined by 6.2%. NVIDIA found itself under pressure as traders reacted to the company’s earnings report. The report beat analyst estimates, but traders expected stronger performance. NVIDIA stock is expensive, so the company must impress the market to attract new buyers.

NASDAQ did not manage to settle above the 19,600 level and pulled back towards 19,300. In case NASDAQ declines below the 19,100 level, it will gain additional downside momentum and move towards the next support level, which is located in the 18,500 – 18,600 range.

Dow Jones

Dow Jones tested the 41,600 level but lost momentum and pulled back from session highs amid a wave of profit-taking. It should be noted that most stocks in the Dow Jones index managed to gain some ground in today’s trading session.

If Dow Jones pulls back below the 50 MA at 41,058, it will head towards the support at 40,500 – 40,600.

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