NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Lows But Stay Deep In Red

SP500

SP500 rebounded from session lows as traders reacted to the better-than-expected ISM Services PMI report. The report indicated that ISM Services PMI increased from 48.8 in June to 51.4 in July, compared to analyst consensus of 51. From a big picture point of view, traders are worried about a potential recession, so the strong report provided some support to stocks. However, this support was not strong enough to push stocks out of the red zone. The recent Non Farm Payrolls and Unemployment Rate reports triggered a global market sell-off, and it looks some some traders received their margin calls today. In this environment, the market may need significant catalysts to rebound.

In case SP500 manages to settle back above the resistance at 5220 – 5240, it will head towards the next resistance level, which is located in the 5310 – 5325 range.

NASDAQ

NASDAQ was under strong pressure in today’s trading session but managed to move away from session lows. High valuations of AI-related stocks remain the key problem for NASDAQ bulls.

In case NASDAQ moves above the nearest resistance at 18,000 – 18,100, it will head towards the next resistance level at 18,500 – 18,600.

Dow Jones

Dow Jones pulled back amid global market sell-off. All 30 components of the Dow Jones index moved lower in today’s trading session. The pullback was led by Intel, which was down by 7.5% as the major pullback continued after the recent earnings report.

From the technical point of view, Dow Jones settled in a range between the support at 38,300 – 38,400 and the resistance at 39,000 – 39,100. RSI is in the oversold territory, so the risks of a rebound are increasing. A move above the 39,100 level will push Dow Jones towards the resistance at 39,700 – 39,800.

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