NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back Despite Strong Results From Big Banks

Key Insights

• SP500 failed to settle above the resistance at 4150. 
• NASDAQ pulled back towards the 13,000 level as traders focused on rising Treasury yields. 
• Dow Jones declined despite JPMorgan’s strong rally. 

SP500

SP500 is swinging between gains and losses as traders react to U.S. economic data and banks’ earnings. Retail Sales declined by 1% month-over-month in March, compared to analyst consensus of -0.4%. Michigan Consumer Sentiment increased from 62 in March to 63.5 in April, compared to analyst consensus of 62.

From the technical point of view, SP500 has made another attempt to settle above the 4150 level but lost momentum and pulled back. SP500 needs to climb above the resistance at 4150 to have a chance to gain sustainable upside momentum in the upcoming trading sessions.

R1:4150 – R2:4175 – R3:4200

S1:4115 – S2:4090 – S3:4070

NASDAQ

NASDAQ tested resistance at 13,140 but lost momentum and moved closer to the 13,000 level. Higher Treasury yields put some pressure on tech stocks ahead of the weekend.

From a big picture point of view, NASDAQ settled in the range between the support at 12,900 and the resistance at 13,140. A move out of this range will provide NASDAQ with a chance to gain sustainable momentum.

R1:13,140 – R2:13,250 – R3:13,400

S1:13,000 – S2:12,900 – S3:12,750

Dow Jones

Dow Jones tested new highs as JPMorgan stock rallied after the release of the earnings report, which indicated that consumers rushed to big banks amid crisis in the regional banks sector. However, financial stocks were the only bright spot in the Dow Jones index today, so it pulled back towards the support at 33,850.

If Dow Jones settles below the 33,850 level, it will move towards the next support level at 33,700. On the upside, a move above the 34,000 level will push Dow Jones towards the resistance at 34,200.

R1:34,000 – R2:34,200 – R3:34,350

S1:33,850 – S2:33,700 – S3:33,500

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