NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats On Profit-Taking

Key Insights

• SP500 remains stuck near the 4950 level as tech stocks pull back. 
• NASDAQ is losing ground as traders take some money off the table in AI-related stocks. 
• Dow Jones made an attempt to settle above the 38,500 level but lost momentum and pulled back towards 38,400.

SP500

SP500 is swinging between gains and losses as traders wait for catalysts. Today, traders focused on RCM/TIPP Economic Optimism Index report, which showed that Economic Optimism Index declined from 44.7 in January to 44 in February. Treasury yields pulled back, but this move did not provide material support to SP500. It should be noted that most markets segments were moving higher in today’s trading session. However, the pullback in tech stocks put pressure on SP500.

From the technical point of view, SP500 is stuck below the resistance at 4960 – 4970. SP500 as made several attempts to settle above this level, but did not manage to develop sufficient upside momentum. A move above the 4970 level will lead to the test of the psychologically important 5000 level.

NASDAQ

NASDAQ is losing ground as traders take profits in AI-related stocks. Advanced Micro Devices and NVIDIA are among the biggest losers in the NASDAQ index today. Both stocks are trading near historic highs, so it’s not surprising to see that traders want to take some money off the table.

Currently, NASDAQ is trying to settle below the support at 17,450 – 17,500. In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 16,950 – 17,000 range.

Dow Jones

Dow Jones gained some ground as the majority of the index components moved higher. Nike rebounded from multi-week lows, providing additional support to Dow Jones index.

Dow Jones needs to settle above the resistance at 38,500 – 38,550 to gain momentum and get to the test of the recent highs near the 38,800 level.

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