NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Retreats As Semiconductor Stocks Pull Back

Key Insights

• SP500 pulls back as traders react to the weaker-than-expected PMI reports. 
• The pullback in semiconductor stocks put significant pressure on NASDAQ.
• Dow Jones gained ground due to the strong performance of healthcare stocks. 

SP500

SP500 pulled back after the release of weaker-than-expected Services PMI reports. Traders continue to take profits after the recent rally. Recession worries serve as an additional negative catalyst for SP500.

Currently, SP500 is trying to settle below the support level at 4090. A move below this level will push SP500 towards the next support at 4070. On the upside, SP500 needs to get back above the 4100 level to have a chance to gain upside momentum in the near term.

R1:4115 – R2:4150 – R3:4175

S1:4090 – S2:4070 – S3:4040

NASDAQ

NASDAQ found itself under material pressure as tech stocks declined. Today’s pullback was led by semiconductor stocks like Advanced Micro Devices, NVIDIA, and GlobalFoundries.

NASDAQ is trying to settle below the important level at 13,000. This is worrisome for the bulls as a move below this level will signal that the current pullback has a good chance to continue. On the upside, NASDAQ needs to get above the 13,000 level to move closer to recent highs.

R1:13,000 – R2:13,140 – R3:13,250

S1:12,900 – S2:12,750 – S3:12,550

Dow Jones

Dow Jones gained ground in today’s trading session due to the strong performance of healthcare stocks. Johnson & Johnson gained 4% as traders reacted to the $8.9 billion talc settlement. UnitedHealth, Merck, and Amgen gained upside momentum in sympathy with the Johnson & Johnson stock.

From the technical point of view, Dow Jones is trying to consolidate after the recent rally. In case Dow Jones manages to stay above the 33,300 level, it will have a good chance to move above the recent highs near the 33,700 level.

R1:33,500 – R2:33,700 – R3:33,850

S1:33,300 – S2:33,150 – S3:33,000

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