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NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pull Back From Yearly Highs

By:
Vladimir Zernov
Published: Jun 5, 2023, 18:51 GMT+00:00

Profit-taking and disappointing ISM Services PMI report were the key catalysts for today's pullback.

NASDAQ

In this article:

Key Insights

  • SP500 did not manage to settle above the 4300 level. 
  • NASDAQ declined as Apple pulled back from yearly highs. 
  • Dow Jones faced strong resistance near the 33,800 level and moved lower. 

SP500

SP500
SP500 050623 Daily Chart

SP500 continued its attempts to settle above the resistance at 4285 as traders reacted to the disappointing ISM Services PMI report. Profit-taking was among the key drivers for SP500 today as traders were willing to take some profits off the table near yearly highs. Interestingly, energy stocks failed to gain upside momentum despite OPEC+ decision to cut production.

From the technical point of view, SP500 may need a pullback to continue its current trend. However, it should be noted that RSI remains in the moderate territory, so there is enough room to gain additional upside momentum in case the right catalysts emerge.

R1:4285 – R2:4325 – R3:4360

S1:4250 – S2:4215 – S3:4200

NASDAQ

NASDAQ
NASDAQ 050623 Daily Chart

NASDAQ tested new highs as demand for tech stocks remained strong, although traders did not miss an opportunity to take some profits at attractive levels. Apple pulled back from highs as it often does during its presentation, and this move had a negative impact on NASDAQ index.

In case NASDAQ manages to settle above the 14,600 level, it will head towards the next resistance at 14,800. A successful test of this level will push NASDAQ towards the resistance at 15,000.

R1:14,600 – R2:14,800 – R3:15,000

S1:14,450 – S2:14,300 – S3:14,100

Dow Jones

Dow Jones
Dow Jones 050623 Daily Chart

Dow Jones pulled back after an unsuccessful attempt to settle above the 33,800 level. Today’s pullback was led by Intel, which was down by more than 4% amid profit-taking after the recent rebound.

A successful test of the support at 33,650 will push Dow Jones towards the next support level at 33,500. If Dow Jones declines below this level, it will head towards the support at 33,300.

R1:33,800 – R2:34,000 – R3:34,130

S1:33,650 – S2:33,500 – S3:33,300

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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