NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Take Profits After Rally

SP500

SP500 is losing ground as traders react to inflation data and focus on trade war with China. Inflation Rate declined from 2.8% in February to 2.4% in March, compared to analyst consensus of 2.6%. Core Inflation Rate decreased from 3.1% to 2.8%, while analysts expected that it would drop to 3%. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 223,000 Americans filed for unemployment benefits in a week, in line with analyst consensus. From a big picture point of view, traders are worried that U.S. and China will not be able to negotiate a trade deal in the near term. Total U.S. tariffs on China jumped to 145% after the recent raise. Such tariffs would have a major impact on trade flows between China and U.S. China signaled that it was ready to negotiate, but it remains to be seen whether such negotiations will take place in the upcoming days.

Currently, SP500 is trying to settle back above the support at 5280 – 5290. In case this attempt is successful, SP500 will move towards the resistance level at 5390 – 5400.

NASDAQ

NASDAQ pulled back as traders took profits after yesterday’s huge rally. Traders stay cautious as the market is extremely volatile.

The nearest resistance level for NASDAQ is located in the 18,500 – 18,550 range. A move above the 18,550 level will open the way to the test of the next resistance at 19,000 – 19,050.

Dow Jones

Dow Jones declined amid broad pullback in the equity markets. However, Dow Jones managed to rebound from session lows and is trying to settle back above the 39,500 level.

In case this attempt is successful, Dow Jones will move towards the 50 MA at 39,932. A move above the 50 MA will open the way to the test of the resistance at 40,500 – 40,600.

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