NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back Amid Profit-Taking

SP500

SP500 is mostly flat as traders are waiting for additional catalysts. Yesterday’s inflation reports did not put any pressure on stocks as traders remained focused on AI hype. Treasury yields continue to move higher, but this move does not hurt SP500. The yield-sensitive real estate stocks are among the biggest losers in SP500 today. Meanwhile, the rally in the oil and precious metals markets provided material support to basic materials and energy stocks. From a big picture point of view, the market sentiment remains bullish, but traders want to see additional positive catalysts before pushing SP500 to new highs.

Currently, SP500 consolidates below the resistance at 5180 – 5190. RSI is in the moderate territory, so there is plenty of room to gain momentum. A move above the 5190 level will push SP500 above the psychologically important 5200 level.

NASDAQ

NASDAQ is losing some ground as tech stocks decline. Tesla, which is down by 4.1%, is among the biggest losers in the NASDAQ index today. Advanced Micro Devices and NVIDIA are also moving lower as traders take some profits off the table near historic highs.

The nearest support level for NASDAQ is located in the 18,000 – 18,050 range. A move below the 18,000 level will open the way to the test of the next support at 17,450 – 17,500.

Dow Jones

Dow Jones gained ground as 3M stock rallied 4.7%. The stock is moving higher as the company announced a change in leadership.

From the technical point of view, Dow Jones is heading towards the nearest resistance at 39,250 – 39,300. On the support side, Dow Jones may get some support near the 50 MA at 38,836. A move below the 50 MA will push Dow Jones towards the support at 38,500 – 38,550.

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