NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As 3M Dives 4.2%

SP500

SP500 pulled back from session highs as traders took some profits off the table ahead of the weekend. Today, traders focused on the better-than-expected Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment improved from 60.7 in June to 61.8 in July, compared to analyst forecast of 61.5. Traders also had a chance to take a look at housing market data. Housing Starts increased by +4.6% month-over-month in June, while Building Permits grew by +0.2%. Both reports exceeded analyst estimates. Utilities and consumer cyclical stocks were among the biggest gainers in the SP500 index today, which indicates that traders have started searching for safe-haven assets.

In case SP500 pulls back below the 6280 level, it will head towards the 50 MA at 6265. A move below the 50 MA will push SP500 towards the support level at 6185 – 6195.

NASDAQ

NASDAQ made an attempt to settle above the resistance level at 23,150 – 23,200 but lost momentum and pulled back towards the 23,000 level.

If NASDAQ settles below 23,000, it will head towards the nearest support, which is located in the 22,850 – 22,900 range. A successful test of the support at 22,850 – 22,900 will open the way to the test of the next support at 22,550 – 22,600.

Dow Jones

Dow Jones pulled back as 3M  declined by 4.2%. The stock found itself under pressure despite the strong earnings report. Traders decided to use the report as an opportunity to take profits near yearly highs.

From the technical point of view, Dow Jones failed to settle above the resistance level at 44,600 – 44,700 and moved towards the 50 MA at 44,320. If Dow Jones settles below the 50 MA, it will head towards the next support at 43,900 – 44,000. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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