NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Tech Stocks Remain Under Pressure

SP500

SP500 is losing some ground as the pullback in tech stocks continues. Tesla, which is down by 2.7%, is among the biggest losers in SP500 today. The stock tested yearly lows after Deutsche Bank downgraded it from Buy to Hold with a price target of $123. Today, traders had a chance to take a look at the Existing Home Sales report, which indicated that Existing Home Sales declined by 4.3% month-over-month in March. Initial Jobless Claims remained unchanged at 212,000, while Philadelphia Fed Manufacturing Index improved from 3.2 in March to 15.5 in April. Treasury yields rebounded after yesterday’s pullback and moved closer to recent highs. The yield of 2-year Treasuries settled near the 5.00% level, while the yield of 10-year Treasuries made an attempt to climb above 4.65%. From a big picture point of view, traders continue to take profits in tech stocks, which enjoyed an incredible rally from October lows.

SP500 continues its attempts to settle below the nearest support at 5035 – 5050. In case SP500 manages to settle below this level, it will head towards the next support, which is located in the 4930 – 4950 range.

NASDAQ

NASDAQ moved lower as tech stocks remained under pressure. Traders are worried about rich valuations of tech stocks.

A successful test of the support at 17,450 – 17,500 will open the way to the test of the next support level at 17,150 – 17,200. It should be noted that RSI is in the oversold territory, so the risks of a pullback are increasing.

Dow Jones

Dow Jones is mostly flat as traders wait for additional catalysts. From the technical point of view, Dow Jones received significant support in the 37,800 – 37,900 range.

In case Dow Jones settles below 37,900, it will gain additional downside momentum and move towards the support at 37,100 – 37,200.

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