NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Pulls Back On Profit-Taking

Key Insights

• SP500 remains stuck in the 4575 – 4600 range. 
• NASDAQ settled below the 15,800 level. 
• Dow Jones moved above the 35,550 level and is trying to gain additional upside momentum. 

SP500

SP500 pulled back as traders took some profits off the table near yearly highs. Today, traders focused on the economic reports. ISM Manufacturing PMI increased from 46 in June to 46.4 in July, while JOLTs Job Openings decreased from 9.62 million in May to 9.58 million in June. Both reports missed analyst estimates. The weaker-than-expected reports have put some pressure on major indices, although it should be noted that they did not trigger a sell-off. The market sentiment remains bullish, and profit-taking is offset by the fear of missing out.

The technical picture remains stable as SP500 is stuck in the 4575 – 4600 range. A move above this range will likely trigger a new wave of stock purchases and push SP500 to new highs.

NASDAQ

NASDAQ has also pulled back in today’s trading session, although this pullback was not strong. There were no big gainers in the NASDAQ index today. Advanced Micro Devices, which was up by 2.7%, was the best performing stock in NASDAQ. Treasury yields moved higher, putting additional pressure on tech stocks.

From the technical point of view, NASDAQ is mostly stuck below the 15,800 level as traders wait for additional catalysts. A move above 15,800 will lead to a test of the resistance in the 15,900 – 16,000 range.

Dow Jones

Dow Jones managed to climb above 35,550 and is trying to settle above this level. The strong rally in Caterpillar stock, which is up by 8.5% after the earnings report, provided material support to Dow Jones today.

RSI remains in the moderate territory so Dow Jones may gain strong momentum in case it stays above the 35,550 level.

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