NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Dive Amid Profit-Taking

SP500

SP500 is losing ground as pullback continues. Traders are taking profits off the table near historic highs. Initial Jobless Claims report indicated that 243,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would increase from 222,000 to 230,000, so the report exceeded analyst expectations. Philadelphia Fed Manufacturing Index improved from 1.3 in June to 13.9 in July, compared to analyst consensus of 2.9. Treasury yields moved higher, putting additional pressure on SP500 and other major indices.

SP500 is moving towards the nearest support at 5520 – 5530. RSI has recently declined into the oversold territory, but there is enough room to gain additional downside momentum in the near term. A successful test of the support at 5520 – 5530 will open the way to the test of the next support level at 5440 – 5450.

NASDAQ

NASDAQ tests new lows as traders sell tech stocks amid rising U.S. – China tensions. Chip stocks like Arm Holdings, Micron, and Advanced Micro Devices are among the biggest losers in the NASDAQ index today. Traders worry that U.S. efforts to curb China’s progress in AI will hurt profits of tech companies.

Currently, NASDAQ is trying to settle below the support at 19,600 – 19,650. In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 19,000 – 19,100 range.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. The pullback is led by JPMorgan Chase and Goldman Sachs, although it should be noted that most stocks in the Dow Jones index have found themselves under pressure.

If Dow Jones manages to settle below the 40,700 level, it will move towards the nearest support at 40,300 – 40,400. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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