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NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Retreats Amid Profit-Taking

By:
Vladimir Zernov
Published: Jun 7, 2023, 18:50 GMT+00:00

Rising Treasury yields put material pressure on tech stocks, and traders shifted some funds to defensive sectors.

NASDAQ

In this article:

Key Insights

  • SP500 failed to settle above the resistance at 4285.
  • NASDAQ gained strong downside momentum as traders took some profits off the table. 
  • Dow Jones gained ground amid rising demand for defensive stocks. 

SP500

SP500
SP500 070623 Daily Chart

SP500 pulled back after another unsuccessful attempt to settle above the 4300 level. Traders continue to take some profits off the table near yearly highs. It should be noted that the pullback is not strong, and certain market segments enjoy solid support. Energy, Real Estate, Industrials, and Utilities stocks are moving higher in today’s trading session.

From the technical point of view, it looks that another resistance level at 4300 may emerge in the upcoming trading sessions. However, the key task for SP500 bulls is to settle above 4285.

R1:4285 – R2:4325 – R3:4360

S1:4250 – S2:4215 – S3:4200

NASDAQ

NASDAQ
NASDAQ 070623 Daily Chart

NASDAQ pulls back amid a sell-off in tech stocks, which was triggered by profit-taking. It looks that rising Treasury yields have finally put material pressure on the yield-sensitive tech stocks.

A move below the 14,300 level will push NASDAQ towards the support at 14,100. In case NASDAQ settles below 14,100, it will head towards the 14,000 level.

R1:14,450 – R2:14,600 – R3:14,800

S1:14,300 – S2:14,100 – S3:14,000

Dow Jones

Dow Jones
Dow Jones 070623 Daily Chart

Dow Jones gains ground as the majority of the index components are moving higher. Traders have shifted some funds from tech stocks to defensive names, which provided support to Dow Jones index.

If Dow Jones settles above 33,650, it will head towards the next resistance level at 33,800. A move above this level will open the way to the resistance at 34,000. On the support side, a successful test of the 33,500 level will push Dow Jones towards the support level at 33,300.

R1:33,650 – R2:33,800 – R3:34,000

S1:33,500 – S2:33,300 – S3:33,175

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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