NASDAQ Index, SP500, Dow Jones Analysis – Stocks Pulled Back From Session Highs

Key Insights

• SP500 settled below the 4500 level as traders reacted to U.S. inflation reports. 
• NASDAQ moved below the support at 15,200. 
• Dow Jones remained stuck in the 35,000 – 35,550 range.

SP500

SP500 pulled back from session highs as traders weighed U.S. inflation data. Inflation Rate increased from 3.0% in June to 3.2% in July, compared to analyst consensus of 3.3%. Core Inflation Rate declined from 4.8% to 4.3%, while analysts expected that it would remain unchanged at 4.8%. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 248,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 230,000. Treasury yields moved higher as bond traders evaluated the data, which served as a bearish catalyst for major indices. The pullbacks in natural gas and oil markets put additional pressure on Energy stocks.

From the technical point of view, SP500 is slowly moving towards the support in the 4430 – 4450 range. A successful test of this support area will push SP500 towards the next support, which is located at 4335 – 4350.

NASDAQ

NASDAQ continues its attempts to settle below the 15,200 level. There are no notable gainers in the NASDAQ index today as traders wait for additional catalysts. It looks that profit-taking after the strong rally in the first half of the year remains the key catalyst for NASDAQ.

If NASDAQ stays below the 15,200 level, it will head towards the next support at 14,560 – 14,680. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum.

Dow Jones

Dow Jones stays range-bound as traders react to U.S. inflation reports. Rising Treasury yields have put some pressure on Dow Jones, but the index remains in the positive territory.

From the technical point of view, Dow Jones settled in the range between the support at 35,000 and the resistance at 35,550. The technical picture has not changed since early August as traders waited for additional catalysts that could push Dow Jones out of the current range.

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