NASDAQ Index, SP500, Dow Jones Analysis – Stocks Retreat With Debt Ceiling In Focus

Key Insights

• SP500 pulled back below the 4115 level amid recession worries. 
• NASDAQ declined as traders took some profits off the table near yearly highs. 
• Dow Jones continued its attempts to settle below the support at 33,175.

SP500

SP500 is losing ground as traders react to the weaker-than-expected Michigan Consumer Sentiment report. The pullback in U.S. regional banks put additional pressure on SP500. In addition, traders remain worried about a potential U.S. default. Treasury Secretary Janet Yellen has recently stated that there was uncertainty about the exact date when Treasury would run out of cash if the U.S. did not raise the debt ceiling. While few investors believe that a potential U.S. default is a real scenario, the debt ceiling talks serve as a negative catalyst for stocks.

A move below the support at 4090 will push SP500 towards the next support level, which is located at 4070. In case SP500 declines below this level, it will head towards the support at 4040.

R1:4115 – R2:4150 – R3:4175

S1:4090 – S2:4070 – S3:4040

NASDAQ

NASDAQ pulled back from yearly highs as traders took some profits off the table amid recession worries. The rebound in Treasury yields served as an additional negative catalyst for the yield-sensitive tech stocks.

The nearest support level for NASDAQ is located at 13,250. If NASDAQ declines below this level, it will head towards the support at 13,140. A move below 13,140 will open the way to the test of the support at 13,000.

R1:13,400 – R2:13,550 – R3:13,700

S1:13,250 – S2:13,140 – S3:13,000

Dow Jones

Dow Jones continues its attempts to settle below the support at 33,175 as the pullback continues. The pullback is broad, and the majority of Dow Jones components are losing ground in today’s trading session.

If Dow Jones manages to settle below the support at 33,175, it will head towards the next support level at 33,000. A successful test of this level will push Dow Jones towards the support at 32,800.

R1:33,300 – R2:33,500 – R3:33,700

S1:33,175 – S2:33,000 – S3:32,800

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