NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Take Some Profits Off The Table

SP500

SP500 is losing some ground as traders take some profits off the table after the strong rally. Energy stocks are among the biggest losers in the SP500 index today as traders react to the pullback in the oil markets. Healthcare and Consumer Defensive stocks have managed to gain upside momentum, which indicates that traders are moving their funds into defensive sectors. This is not surprising as traders want to reduce their risks after the strong rebound from August lows. From a big picture point of view, traders wait for Powell’s comments at Jackson Hole. Fed Minutes, which will be released tomorrow, may also have a material impact on market dynamics.

In case SP500 settles below the 5600 level, it will move towards the nearest support at 5550 – 5570. On the upside, a move above 5625 will push SP500 towards the resistance at 5660 – 5675.

NASDAQ

NASDAQ moved away from recent highs amid profit-taking. However, this pullback was not strong as traders remained bullish on tech stocks. Palo Alto Networks, which is up by 8.5%, is the biggest gainer in the NASDAQ index today. The stock rallied as the company’s report beat analyst expectations on both earnings and revenue.

The nearest support level for NASDAQ is located in the 19,500 – 19,600 range. A move below the 19,500 level will push NASDAQ towards the support at 18,500 – 18,600.

Dow Jones

Dow Jones settled below the 40,900 level as traders waited for additional catalysts. Boeing  was the biggest loser in the Dow Jones index today. The stock was down by 4.6% as Boeing suspended flight tests of the 777X aircraft.

In case Dow Jones moves below the 19,700 level, it will head towards the nearest support, which is located in the 19,500 – 19,600 range.

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