NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Tests 19,100 As Tesla Dives 10.8%

By:

Vladimir Zernov

Updated: Jul 24, 2024, 19:31 GMT+00:00

Key Points:

SP500 tests support at 5450 - 5465 as traders react to earnings reports.
NASDAQ is down by 3.4% amid strong sell-off in the tech sector.
Dow Jones is trying to settle below the 39,900 level.

SP500

SP500 240724 4h Chart

SP500 is under strong pressure amid broad sell-off in the tech segment, which was triggered by disappointing earnings reports. Today, traders also focused on PMI reports. Manufacturing PMI declined from 51.6 in June to 49.5 in July, while analysts expected that it would grow to 51.7. Numbers below 50 show contraction. Services PMI increased from 55 in June to 56 in July, compared to analyst consensus of 55.3. The report showed that the services sector remained in decent shape. New Home Sales declined by 0.6% month-over-month in June, compared to analyst consensus of +3.5%. From a big picture point of view, the economic reports did not have a big impact on market dynamics as traders focused on earnings reports.

Currently, SP500 is trying to settle below the support at 5450 – 5465. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 5350 – 5370 range.

NASDAQ

NASDAQ 240724 4h Chart

NASDAQ is under strong pressure as traders sell Tesla and Alphabet stocks after their earnings reports. Tesla’s report missed analyst estimates and showed that the company’s profit declined by 45%. As a result, the stock is down by 10.8% in today’s trading session. Alphabet is down by 5.1% as traders focused on high AI spending and weaker-than-expected performance of YouTube.

The nearest support level for NASDAQ is located in the 19,000 – 19,100 range. If NASDAQ settles below 19,000, it will move towards the next support level at 18,500 – 18,600.

Dow Jones

Dow Jones 240724 4h Chart

Dow Jones pulls back amid broad sell-off in the equity markets. The pullback is led by Microsoft, which is down by 3.6% as traders rush to sell their positions in tech stocks.

RSI has recently moved into the oversold territory, so the risks of a rebound are increasing. If Dow Jones settles below the 39,900 level, it will move towards the nearest support, 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.

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.