NASDAQ Index, SP500, Dow Jones Analysis – Major Indices Rebound After Yesterday’s Pullback

Key Insights

• SP500 moved back towards the 4450 level. 
• NASDAQ tested resistance in the 15,200 – 15,300 range. 
• Dow Jones rebounded towards the 34,000 level. 

SP500

SP500 gains ground as traders react to U.S. job market data. Non Farm Payrolls report showed that the economy added 209,000 jobs in June, compared to analyst consensus of 225,000. Unemployment Rate declined from 3.7% in May to 3.6% in June. The initial reaction was cautious, but U.S. dollar’s pullback and lower Treasury yields provided support to major indices. Energy stocks are among the best performers in today’s trading session as WTI oil tests multi-week highs amid supply concerns. Healthcare and Defensive stocks are losing ground as demand for safe-haven assets declines.

From the technical point of view, SP500 moved back into the resistance area at 4430 – 4450. SP500 has previously faced strong resistance near this area so bulls will likely have to wait for the next week for a real test of the 4450 level.

NASDAQ

NASDAQ has also moved higher as traders focused on the pullback in Treasury yields. It should be noted that Treasury yields are still close to multi-month highs, so NASDAQ will likely need an additional pullback in yields to test new highs.

NASDAQ is testing the resistance in the 15,200 – 15,300 range, but it remains to be seen whether it will find enough buyers ahead of the weekend.

Dow Jones

Dow Jones rebounded from the support at 33,785 – 33,875 and is moving higher. Dow Jones stays weaker than SP500 and NASDAQ as Healthcare and Consumer Defensive stocks decline.

The nearest significant resistance level for Dow Jones is located in the 34,200 – 34,250 range, although it may face some resistance near the 50 MA at 34,135. On the support side, Dow Jones must settle below 33,785 to gain additional downside momentum.

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