NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Crowdstrike Dives 13.1%

SP500

SP500 pulled back as traders focused on global IT outage, which was caused by a Crowdstrike software update. The outage caused disruption in many industries, halted flights and stopped some Tesla’s production lines. Not surprisingly, tech stocks moved lower as traders reacted to the news. It should be noted that the pullback was broad, and most market sectors found themselves under pressure. Meanwhile, rising Treasury yields put additional pressure on SP500 and other major indices.

SP500 has recently made an attempt to settle below the support at 5520 – 5530. If SP500 settles below 5520, it will gain additional downside momentum and move towards the next support level, which is located in the 5440 – 5450 range.

NASDAQ

NASDAQ tested new lows as traders continued to sell tech stocks amid global IT outage. Not surprisingly, Crowdstrike was the worst performer in the NASDAQ index today. Intel, which was down by 4.8%, has also found itself under significant pressure as traders focused on the IT outage.

RSI is in the oversold territory, so the risks of a pullback are increasing. However, NASDAQ may gain additional downside momentum if it settles below the support at 19,600 – 19,650. In this scenario, NASDAQ will head towards the next support level, which is located in the 19,000 – 19,100 range.

Dow Jones

Dow Jones moved lower amid broad pullback in the equity markets. Travelers was the biggest loser in the Dow Jones index today. The stock was down by 7% as the company’s second-quarter revenue missed analyst estimates.

Currently, Dow Jones is trying to settle below the support at 40,300 – 40,400. In case this attempt is successful, Dow Jones will head towards the next support level, which is located in the 39,700 – 39,800 range.

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