NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat Amid Profit-Taking

SP500

SP500 pulls back as traders take profits near historic highs amid lack of catalysts. Basic materials and energy stocks are among the leaders in today’s trading session as traders focus on the strong performance of precious metals and oil markets. Utilities and financial stocks found themselves under material pressure. Treasury yields have started to rebound from recent lows. The yield of 2-year Treasuries moved towards the 4.13% level, while the yield of 10-year Treasuries climbed above 4.19%.

SP500 faced strong resistance at 6090 – 6100 and pulled back towards the 50 MA at 6054. In case SP500 manages to settle below the 50 MA, it will head towards the nearest support level, which is located in the 6020 – 6030 range. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.

NASDAQ

NASDAQ is losing ground as traders take profits in tech stocks. Advanced Micro Devices is among the biggest losers in the NASDAQ index today. The stock gained downside momentum after BofA cut the price target from $180 to $155. Weakening PC sales were the key driver for the analyst downgrade.

NASDAQ did not manage to settle above the resistance at 21,600 – 21,700 and pulled back below the 21,500 level. If NASDAQ settles below 21,400, it will move towards the next support level at 21,100 – 21,200.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. IBM and NVIDIA are among the biggest losers in the Dow Jones index today.

The nearest support level for Dow Jones is located in the 44,400 – 44,500 range. In case Dow Jones declines below the 44,400 level, it will move towards the next support level at 43,800 – 43,900. On the upside, a move above the 44,700 level will push Dow Jones towards the 50 MA at 44,790.

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