NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Dives On Valuation Concerns

SP500

SP500 is under pressure as traders focused on comments from Wall Street CEOs who noted that investors should be prepared for a pullback. Goldman Sachs’ David Solomon noted that pullbacks were a normal part of market cycles. Traders who have hesitated to take profits near historic highs used these words as an excuse to trigger sell buttons. Today’s pullback was broad, and most market sectors moved lower. Tech stocks were among the biggest losers today, which was not surprising as traders took profits after the strong rally. Basic materials stocks declined amid strong pullback in precious metals markets. Consumer defensive stocks managed to gain some ground as demand for safe-haven assets increased.

Currently, SP500 is trying to settle below the support at 6765 – 6775. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6690 – 6700 range.

NASDAQ

NASDAQ is under strong pressure amid profit-taking in the tech sector. Palantir, which is down by 7.6%, is among the biggest losers the NASDAQ index today. The stock suffered a sell-off despite the better-than-expected earnings report.

In case NASDAQ manages to settle below the support at 25,550 – 25,600, it will move towards the next support level at 25,150 – 25,200. RSI is close to the oversold territory, but there is enough room to gain downside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. It should be noted that rising demand for safe-haven assets provided some support to the Dow Jones index today.

A successful test of the support at 46,900 – 47,000 will open the way to the test of the next support level at 46,100 – 46,200.

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