NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Pulls Back From Historic Highs

SP500

SP500 pulled back as traders took some profits off the table ahead of the weekend. Fedex, which is down by 14.2%, is the biggest loser in the SP500 index today. The stock found itself under pressure as traders reacted to the company’s earnings report, which missed analyst expectations. In addition, Fedex lowered is profit guidance. It remains to be seen whether the market interprets Fedex’ results as a sign of general economic slowdown. From a big picture point of view, traders remain focused on dovish Fed after the aggressive rate cut.

SP500 faced resistance in the 5735 – 5750 range and pulled back. The nearest support level for SP500 is located in the 5660 – 5680 range. A move below this level will push SP500 towards the 50 MA at 5621.

NASDAQ

NASDAQ is losing some ground amid profit-taking. It should be noted that the pullback is not strong as traders remain bullish. RSI has recently moved into the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

NASDAQ needs to settle above the nearest resistance at 20,000 – 20,100 to gain additional upside momentum. If NASDAQ moves above the 20,100 level, it will head towards the resistance at 20,700 – 20,800.

Dow Jones

Dow Jones is swinging between gains and losses as traders wait for additional catalysts. Nike, which is up by 5.9%, is the biggest gainer in the Dow Jones index today. The company’s shares gained ground after Nike announced that its CEO John Donahoe would retire. Elliott Hill was named as new CEO.

If Dow Jones settles above the resistance at 42,100 – 42,200, it will head towards the 42,500 level. On the support side, a move below 41,800 will push Dow Jones towards the next support at 41,300 – 41,400.

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