NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Treasury Yields Rise

SP500

SP500 is losing ground as traders react to CB Leading Index report for September. The report indicated that CB Leading Index declined by 0.5%, compared to analyst consensus of -0.3%. Tech stocks managed to gain some ground in today’s trading session, but other sectors have found themselves under pressure. Real Estate stocks were among the biggest losers as traders focused on rising Treasury yields. The yield of 2-year Treasuries moved above the psychologically important 4.00% level, which was bearish for stocks.

From the technical point of view, SP500 faced strong resistance in the 5870 – 5880 range and is trying to gain additional downside momentum. In case SP500 settles below the 50 MA at 5836, it will head towards the nearest support level, which is located in the 5800 – 5810 range.

NASDAQ

NASDAQ was mostly flat as demand for chip stocks remained strong. NVIDIA and Super Micro Computer were the best performers in the NASDAQ index today. It should be noted that most stocks in the index have moved lower amid lack of positive catalysts.

The nearest support level for NASDAQ is located in the 20,000 – 20,100 range. In case NASDAQ declines below the 20,000 level, it will move towards the next support level at 19,500 – 19,600. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is losing ground as traders take profits near historic highs. Boeing, which was up by 2.9%, was the only notable gainer in the Dow Jones index today. The stock moved higher after the company reached a deal with the International Association of Machinists and Aerospace Workers. However, the deal is subject to membership vote, which will take place on October 23.

If Dow Jones settles below the 50 MA at 42,886, it will head towards the support level at 42,600 – 42,700.

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