NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As MongoDB Dives 25%

SP500

SP500 pulls back as traders react to U.S. economic reports. PCE Price Index remained unchanged at 2.7% in April, in line with analyst estimates. Core PCE Price Index was also unchanged at 2.8%. Personal Income increased by 0.3% month-over-month in April, compared to analyst consensus of +0.3%. Personal Spending grew by 0.2%. Treasury yields moved lower, but this move did not provide support to SP500. Today’s pullback was not broad, and most market segments gained ground in today’s trading session. However, the strong sell-off in tech stocks pushed SP500 into the negative territory.

In case SP500 manages to settle below the 5200 level, it will get to the test of the support at 5180 – 5190. On the upside, a move above the 5240 level will open the way to the test of the resistance at 5270 – 5280.

NASDAQ

NASDAQ is losing ground amid a broad sell-off in tech stocks. The pullback is led by MongoDB, which is down by 25% in today’s trading session. The stock gained strong downside momentum as the company lowered its full-year guidance. The disappointing report had a negative impact on market sentiment in the tech sector.

Currently, NASDAQ is trying to settle below the support at 18,300 – 18,400. In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 17,800 – 18,900 range. Traders should note that RSI is in the oversold territory, so the risks of a rebound are increasing.

Dow Jones

Dow Jones rebounds as Salesforce is up by 5%. Traders use the recent sell-off in Salesforce stock to buy the shares at attractive levels.

The nearest resistance level for Dow Jones is located in the 38,500 – 38,550 range. A move above 38,550 will push Dow Jones towards the next resistance at 39,000 – 39,100.

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