NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Salesforce Dives 20.8%

SP500

SP500 is losing ground as traders react to U.S. economic reports. The second estimate of GDP Growth Rate showed that GDP grew by 1.3% in the second quarter, in line with the analyst consensus. Initial Jobless Claims report showed that 219,000 Amercians filed for unemployment benefits in a week, compared to analyst forecast of 218,000. Pending Home Sales declined by 7.7% month-over-month in April. On a year-over-year basis, Pending Home Sales decreased by 7.4%. Treasury yields moved lower as bond traders reacted to the reports. The yield of 2-year Treasuries settled below the 4.95% level, while the yield of 10-year Treasuries pulled back towards 4.55%. However, this move did not provide support to major indices.

In case SP500 settles below the 5250 level, it will head towards the nearest material support level, which is located in the 5180 – 5190 range.

NASDAQ

NASDAQ is losing ground as traders continue to take profits in tech stocks. Currently, NASDAQ is trying to settle below the support at 18,600 – 18,700.

In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 18,300 – 18,400 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is moving lower amid a broad pullback in the equity markets. Salesforce, which is down by 20.8%, is the worst performer in the Dow Jones index today. The stock is under strong pressure after the disappointing quarterly report.

If Dow Jones settles below the 38,000 level, it will get to the test of the nearest support at 37,700 – 37,800. Traders should note that RSI is in the oversold territory, so the risks of a rebound are increasing.

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