NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Take Profits Ahead Of Fed Decision

SP500

SP500 pulled back as traders reacted to economic reports. Retail Sales increased by 0.7% month-over-month in November, compared to analyst forecast of +0.5%. Retail Sales Ex Autos grew by 0.2%, while analysts expected that they would increase by 0.4%. Industrial Production declined by 0.1% month-over-month in November, compared to analyst consensus of +0.3%. NAHB Housing Market Index remained unchanged at 46 in December, missing analyst expectations. From a big picture point of view, traders are taking some profits off the table ahead of tomorrow’s Fed decision. Several economic reports missed analyst expectations, which served as an additional bearish catalyst for SP500. Healthcare and consumer cyclical stocks were among the biggest gainers in the SP500 index today, which shows that traders have started to search for safe-haven assets.

The nearest support level for SP500 is located in the 6020 – 6030 range. If SP500 settles below the 6020 level, it will head towards the next support level at 5980 – 5990.

NASDAQ

NASDAQ moved away from historic highs amid profit-taking. Broadcom, which was the best stock in the index in recent trading sessions, was among the biggest losers in the NASDAQ index today.

In case NASDAQ declines below the 21,800 level, it will move towards the support level at 21,600 – 21,650. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones tested new lows as the strong pullback continued. Unitedhealth, which was down by 3.5%, was the worst performer in the Dow Jones index today.

In case Dow Jones settles below the 43,400 level, it will get to the test of the nearest resistance at 43,200 – 43,300. RSI is in the oversold territory, so the risks of a rebound are increasing.

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