NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Sell The News

SP500

SP500 pulls back as traders react to the encouraging inflation data. Inflation Rate declined from 3.3% in May to 3.0% in June, compared to analyst consensus of 3.1%. Core Inflation Rate decreased from 3.4% to 3.3%, compared to analyst forecast of 3.4%. Treasury yields moved lower as bond traders bet on dovish Fed after the release of inflation reports. SP500 tested new highs as traders reacted to inflation data but quickly lost momentum and moved lower. The pullback is a classic case of “sell the news”, as traders used the good data as an opportunity to take profits near historic highs.

In case SP500 settles below the 5590 level, it will head towards the 50 MA at 5557. A move below the 50 MA will open the way to the test of the support at 5520 – 5530.

NASDAQ

NASDAQ retreats as Tesla  dives 7.5% after delaying its Robotaxi event. Traders also take profits in chip stocks, including Arm Holdings, Intel, NVIDIA, and Micron.

The nearest significant support level for NASDAQ is located in the 19,900 – 20,000 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge. A move below the 19,900 level will open the way to the test of the support at 19,600 – 19,700.

Dow Jones

Dow Jones is mostly flat amid rising demand for consumer stocks. Home Depot, which is up by 2.4%, is the best performer in the Dow Jones index today.

Currently, Dow Jones is trying to settle above the resistance at 39,700 – 39,800. This resistance level has been tested many times and proved its strength. A successful test of this level will provide Dow Jones with an opportunity to gain additional upside momentum and test historic highs.

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