NASDAQ Index, SP500, Dow Jones Analysis – Stocks Mixed As Traders Take Some Profits Off The Table

Key Insights

• SP500 remains stuck near the resistance at 4285.
• NASDAQ is mostly flat as some traders continue to take profits near yearly highs. 
• Dow Jones is trying to settle below the support level at 33,500.

SP500

SP500 continues its attempts to settle above the 4285 level. Today, traders focused on IBD/TIPP Economic Optimism Index report, which showed that Economic Optimism Index increased from 41.6 in May to 41.7 in June. Treasury yields were moving higher, but this move did not put pressure on SP500.

From the technical point of view, SP500 is trying to stabilize after the recent rally. There is no pullback, which is a bullish sign. In case SP500 manages to settle above the 4285 level, it will gain additional upside mometnum and move towards the next resistance, which is located at 4325.

R1:4285 – R2:4325 – R3:4360

S1:4250 – S2:4215 – S3:4200

NASDAQ

NASDAQ is also mostly flat in quiet trading. RSI is in the overbought territory, so the risks of a pullback are increasing. However, demand for tech stocks stays strong due to the AI boom, so it remains to be seen whether profit-taking will push NASDAQ to lower levels.

A move above the 14,600 level will push NASDAQ towards the next resistance at 14,800. On the support side, a successful test of the support at 14,450 will open the way to the test of the next support level at 14,300.

R1:14,600 – R2:14,800 – R3:15,000

S1:14,450 – S2:14,300 – S3:14,100

Dow Jones

Dow Jones moved lower but the pullback was not strong. The number of gainers in the Dow Jones index was almost equal to the number of losers.

In case Dow Jones settles below the 33,500 level, it will head towards the support at 33,300. On the upside, a move above 33,650 will push Dow Jones towards the next resistance level at 33,800.

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.