NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Traders Sell The News

SP500

SP500 moved lower as traders reacted to inflation data and focused on the trade deal between U.S. and China. Inflation Rate increased from 2.3% in April to 2.4% in May, while analysts expected that it would grow to 2.5%. Core Inflation Rate remained unchanged at 2.8%, compared to analyst forecast of 2.9%. Treasury yields moved lower as bond traders bet on dovish Fed after the release of soft CPI report. However, this move did not provide material support to SP500. U.S. President Donald Trump announced that the deal with China was done. U.S. Commerce Secretary Howard Lutnick noted that the written version of the deal would not be released publicly. It looks that traders decided to sell the news as most sectors moved lower in today’s trading session. Meanwhile, energy stocks gained strong upside momentum as traders reacted to the strong rally in the oil markets.

Currently, SP500 is trying to settle below the support at 6000 – 6010. In case this attempt is successful, SP500 will move towards the 50 MA at 5972. A move below the 50 MA will push SP500 towards the support level at 5910 – 5920.

NASDAQ

NASDAQ pulled back as traders took some profits off the table near multi-month highs. The terms of the deal with China remain unknown, and traders are cautious. Interestingly, the soft CPI report did not provide sufficient support to NASDAQ as traders focused on U.S. – China trade deal.

If NASDAQ settles below the 21,800 level, it will move towards the 50 MA at 21,654. A successful test of this level will open the way to the test of the support at 21,450 – 21,500.

Dow Jones

Dow Jones is mostly flat as traders react to inflation data and trade deal news. From the technical point of view, Dow Jones is trying to settle above the resistance at 42,700 – 42,800.

In case Dow Jones stays above the 42,800 level, it will head towards the resistance at 43,200 – 43,300.

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