NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Traders Sell Chip Stocks

SP500

SP500 pulls back as traders take some profits off the table amid lack of strong catalysts. Today, traders had a chance to take a look at the Durable Goods Orders report. The report indicated that Durable Goods Orders increased by 9.9% month-over-month in July, compared to analyst forecast of +5%. Durable Goods Orders Ex Transp decreased by 0.2% on a month-over-month basis. Dallas Fed Manufacturing Index improved from -17.5 in July to -9.7 in August, compared to analyst forecast of -14. Energy stocks were among the biggest gainers in the SP500 today as traders focused on the strong rally in the oil markets, which was driven by the news from Libya. Consumer cyclical and tech stocks have found themselves under material pressure in today’s trading session.

In case SP500 settles below the 5600 level, it will head towards the nearest support, which is located in the 5550 – 5570 range. A move below 5550 will push SP500 towards the support at 5400 – 5420.

NASDAQ

NASDAQ retreats as traders sell chip stocks. Super Micro Computer, Micron, Advanced Micro Devices and NVIDIA are among the biggest losers in the NASDAQ index today.

Currently, NASDAQ is trying to settle below the nearest support at 19,500 – 19,600. RSI is in the moderate territory, so there is plenty of room to gain downside momentum. If NASDAQ settles below the support at 19,500, it will head towards the next support level at 18,500 – 18,600.

Dow Jones

Dow Jones gained ground amid rising demand for consumer defensive and healthcare stocks. From a big picture point of view, traders increase their positions in defensive sectors after the strong rally from August lows.

In case Dow Jones settles above the nearest resistance at 41,300 – 41,400, it will gain additional upside momentum and head towards the 42,000 level.

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