NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back After Yesterday’s Rally

SP500

SP500 is losing ground as traders react to economic reports. Initial Jobless Claims report showed that 223,000 Americans filed for unemployment benefits in a week. The report has mostly met analyst forecast of 224,000. Philadelphia Fed Manufacturing Index decreased from 18.1 in February to 12.5 in March, compared to analyst consensus of 8.5. Existing Home Sales increased by +4.2% month-over-month in February, compared to analyst forecast of -0.7%. Today’s pullback is broad, and most market sectors are moving lower. Utilities stocks managed to gain some ground amid rising demand for defensive sectors. Energy stocks have also moved higher as oil markets rallied after U.S. announced new Iran-related sanctions.

In case SP500 settles below 5640, it will head towards the support level at 5590 – 5600. On the upside, a move above the resistance at 5700 – 5710 will open the way to the test of the next resistance level at 5800 – 5810.

NASDAQ

NASDAQ pulls back as traders stay cautious after yesterday’s Fed decision and Powell’s comments, which have provided material support to stocks. From a big picture point of view, traders are worried that trade wars will hurt economic growth and reduce companies’ profits.

Currently, NASDAQ is trying to settle below the support level at 19,600 – 19,650. In case this attempt is successful, NASDAQ will move towards the next support at 19,100 – 19,150.

Dow Jones

Dow Jones is trying to settle below the nearest support level at 41,700 – 41,800. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Dow Jones declines below the support at 41,700, it will head towards the next support level at 41,100 – 41,200. On the upside, a move above the recent highs near 42,250 will push Dow Jones towards the nearest resistance level, which is located in the 42,500 – 42,600 range.

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