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

Key Insights

• SP500 pulled back from session highs and settled near the 4500 level. 
• NASDAQ declined below the 15,400 level. 
• Dow Jones moved lower as Apple declined by 4%. 

SP500

SP500  pulled back from session highs as traders digested the Non Farm Payrolls report, which showed that U.S. economy added 187,000 in July. Analysts expected Non Farm Payrolls of 200,000, so the report missed analyst estimates. Unemployment Rate declined from 3.6% in June to 3.5% in July, compared to analyst consensus of 3.5%. Participation Rate remained unchanged at 62.6%. The reports triggered a pullback in Treasury yields, but this pullback did not provide material support to major indices.

From the technical point of view, SP500 is moving towards the 200 MA at 4480. In case SP500 settles below this level, it will head towards the support in the 4430 – 4450 range.

NASDAQ

NASDAQ has also moved away from session highs as traders reduced risks ahead of the weekend. Apple, which is down by 4% after the earnings report, was among the notable losers in the NASDAQ index today. Apple has a big impact on NASDAQ dynamics, so the sell-off in the company’s shares put material pressure on the index.

A move below the nearest support at 15,200 – 15,300 will open the way to the test of the next support, which is located in the 14,560 – 14,680 range.

Dow Jones

Dow Jones is losing ground due to the weak performance of Apple stock. The index settled below the key resistance in the 35,400 – 35,550 range.

If Dow Jones declines below the support in the 35,000 – 35,100 range, it will head towards the next support level at 34,500 – 34,600. The 200 MA is located near 34,600, so Dow Jones will likely get strong support in this area.

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