NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Tech Stocks Fall

SP500

SP500 is losing ground as traders react to economic reports. PPI increased by +0.2% month-over-month in November, in line with analyst consensus. Core PPI was unchanged, while analysts expected that it would increase by +0.2%. Retail Sales grew by +0.6% on a month-over-month basis in November, exceeding the analyst forecast of +0.4%. Interestingly, the better-than-expected Retail Sales report did no provide any support to SP500. Today, traders also had a chance to take a look at the Existing Home Sales report for December. The report indicated that Existing Home Sales increased by +5.1%, compared to analyst forecast of -1.6%. Energy stocks were among the biggest gainers in the SP500 index today as traders focused on the continuation of the rally in the oil markets, which was triggered by U.S. threats against Iran. Tech stocks found themselves under significant pressure.

SP500 settled below the previous support at 6940 – 6950 and is trying to settle below the 6900 level. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 6870 – 6880 range.

NASDAQ

NASDAQ retreats amid falling demand for tech stocks. From a big picture point of view, traders take profits near historic highs amid lack of additional positive catalysts.

The nearest support level for NASDAQ is located in the 25,200 – 25,250 range. In case NASDAQ declines below the 25,200 level, it will move towards the support at 24,800 – 24,850.

Dow Jones

Dow Jones moved lower amid broad pullback in the equity markets. However, rising demand for healthcare and consumer defensive stocks provided some support to the Dow Jones index today.

If Dow Jones settles below the 49,000 level, it will head towards the nearest support at 48,700 – 48,800. 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.