NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Remains Stuck Near 40,000

SP500

SP500 is flat ahead of the weekend as traders wait for additional catalysts. Today, traders focused on the CB Leading Index report for April. The report showed that CB Leading Index declined by 0.6% month-over-month, compared to analyst consensus of -0.3%. Basic materials and energy stocks are among the leaders in the SP500 today. This is not surprising as silver tests multi-year highs while gold managed to settle above the $2400 level and is moving towards historic highs. Meanwhile, tech stocks are losing ground as traders continue to take profits off the table near historic highs. Treasury yields continue to rebound from recent lows, which is somewhat surprising as markets expect that Fed will start cutting rates in September.

In case SP500 settles below the 5300 level, it will get to the test of the support at 5270 – 5280. A move below the 5270 level will open the way to the test of the 50 MA at 5240.

NASDAQ

NASDAQ pulls back as traders take profits in tech stocks. NVIDIA and Micron are among the biggest losers in the NASDAQ index today as traders reduce their exposure to shares of AI-related companies.

The nearest support level for NASDAQ is located in the 18,300 – 18,400 range. A move below 18,300 will push NASDAQ towards the next support at 17,800 – 17,900.

Dow Jones

Dow Jones remains stuck near the resistance at 39,900 – 40,000 as traders wait for additional catalysts that could push the index above the psychologically important 40,000 level.

RSI has recently moved back into the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If Dow Jones fails to settle above 40,000, traders may decide to take some profits off the table and push the index towards the 50 MA at 39,490.

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