NASDAQ Index, SP500, Dow Jones Analysis – Stocks Are Mostly Flat After Yesterday’s Sell-Off

Key Insights

• SP500 managed to settle above the 4500 level. 
• NASDAQ gained some ground despite rising Treasury yields. 
• Dow Jones was mostly flat as traders waited for additional catalysts.

SP500

SP500 is moving lower as traders react to the weaker-than-expected PMI reports. ISM Services PMI declined from 53.9 in June to 52.7 in July, while S&P Global Services PMI decreased from 54.4 in June to 52.3 in July. The recent U.S. debt downgrade continues to put pressure on major indices, although it looks that markets have mostly calmed down after the initial sell-off. Energy stocks are among the best performers in SP500 today as traders focus on the strong rebound in the oil markets. Treasury yields continue to move higher, putting pressure on the rate-sensitive Utilities and Real Estate stocks.

SP500 received some support near the 4500 level. In case SP500 manages to settle above 4530, it will head towards the resistance in the 4575 – 4600 range.

NASDAQ

NASDAQ gained some ground after yesterday’s sell-off. Some traders used the strong pullback as an opportunity to increase their long positions at attractive levels. Demand for tech stocks stays strong, although it looks that NASDAQ will need significant catalysts to get back to yearly highs.

Currently, NASDAQ settled above the support level in the 15,200 – 15,300 range. If NASDAQ declines below the 15,200 level, it will gain additional downside momentum and move towards the next support at 14,560 – 14,680.

Dow Jones

Dow Jones is mostly flat as traders wait for additional catalysts. There are no big gainers in the Dow Jones index today, and the trading activity is low.

From the technical point of view, Dow Jones settled in the range between the support at 35,100 and the resistance at 35,400. The recent pullback pushed RSI closer to the oversold territory, so Dow Jones has plenty of room to gain upside momentum in case the right catalysts emerge.

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