NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back On Profit-Taking

Key Insights

• SP500 moved towards the 4350 level as traders took profits after the recent rally. 
• NASDAQ settled near the 15,100 level as traders waited for additional catalysts. 
• Dow Jones declined towards the 34,000 level. 

SP500

SP500 pulls back as traders take some profits off the table after the strong rally. There are no important economic reports scheduled to be released in the U.S. today, and it’s not surprising to see that traders did not find sufficient catalysts to push SP500 to new highs. In addition, Treasury yields have started to rebound, which is bearish for stocks. Real Estate stocks have found themselves under strong pressure due to rising Treasury yields. Healthcare and Consumer Defensive segments are moving higher today as traders shift their funds to defensive sectors.

RSI remains in the overbought territory, so the risks of a pullback are rising. In case SP500 settles below the 4350 level, it will move towards the nearest support, which is located in the 4260 – 4280 range.

NASDAQ

NASDAQ is losing some ground amid profit-taking. However, the pullback is not strong, and the general market sentiment remains bullish in absence of catalysts. It should be noted that rising Treasury yields did not put significant pressure on NASDAQ.

If NASDAQ moves back below the 15,000 level, it will head towards the next support at 14,560 – 14,680.

Dow Jones

Dow Jones faced resistance in the 34,000 – 34,150 range and started to move lower. The pullback is not broad, and half of Dow Jones components are gaining ground in today’s trading session.

From the technical point of view, Dow Jones needs to settle above 34,150 to gain additional upside momentum.

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