NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Settles Below 20,000 Amid Profit-Taking

SP500

SP500 tests new highs as traders stay bullish after the weaker-than-expected Retail Sales report. The report indicated that Retail Sales increased by 0.1% month-over-month in May, compared to analyst consensus of +0.2%. Retail Sales Ex Auto declined by 0.1% on a month-over-month basis, while analysts expected that they would grow by 0.2%. Treasury yields moved lower as bond traders bet on a less hawkish Fed after the release of the Retail Sales data. The yield of 2-year Treasuries pulled back towards the 4.70% level, while the yield of 10-year Treasuries settled near 4.20%. Falling Treasury yields provided additional support to SP500 and other major indices. Energy stocks are among the biggest gainers in the SP500 today. Oil markets test multi-week highs as traders bet on strong demand, while natural gas markets rebound after the recent pullback. From a big picture point of view, the market sentiment remains extremely bullish.

RSI is in the overbought territory, so the risks of a pullback are increasing. However, a move above the 5500 level will provide SP500 with an opportunity to gain additional upside momentum.

NASDAQ

NASDAQ is flat as traders take some profits off the table near historic highs. Micron and NVIDIA are among the biggest gainers in the NASDAQ index today as traders say focused on AI-related stocks.

NASDAQ settled below the psychologically important 20,000 level. A move above 20,000 will push NASDAQ towards 20,100.

Dow Jones

Dow Jones is swinging between gains and losses in a quiet trading session. Traders are not ready for big moves ahead of the holiday.

In case Dow Jones pulls back below the 50 MA at 38,734, it will head towards the nearest support level at 38,500 – 38,550. On the upside, Dow Jones needs to settle above the resistance at 39,000 – 39,100 to gain sustainable momentum.

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