NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back From Session Highs As AppLovin Dives 20%

SP500 Moves Lower Amid Profit-Taking

SP500 is losing ground as traders continue to take profits after the strong rally and focus on rising tensions in the Middle East.

Houthis attacked Saudi-backed forces in Yemen, claiming that Saudi Arabia prepared a military operation against Houthis. Oil prices gained 4% as traders focused on potential supply disruptions.

Rising oil prices pushed Treasury yields higher as bond traders bet on hawkish Fed. The yield of 2-year Treasuries settled near the 4.25% level, while the yield of 10-year Treasuries moved towards 4.67%. Rising Treasury yields put additional pressure on SP500.

Traders also focused on the Initial Jobless Claims report. The report showed that 199,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 202,000. Initial Jobless Claims data indicated that job market remained in decent shape.

Not surprisingly, energy stocks were among the biggest gainers in the SP500 index today. Most market sectors moved lower in today’s trading session.

Currently, SP500 is trying to settle below the support at 7720 – 7730. In case SP500 manages to settle below the 7720 level, it will head towards the next support, which is located in the 7615 – 7625 range. On the upside, a move above the 7750 level will push SP500 towards the resistance level at 7790 – 7800.

NASDAQ Pulls Back Amid Falling Demand For Software Stocks

NASDAQ is losing some ground as traders focus on rising Treasury yields and react to earnings reports. AppLovin , which is down by -20%, is among the biggest losers in the NASDAQ index today. The stock suffered a sell-off as the company’s quarterly revenue missed analyst estimates. Analysts rushed to downgrade the stock, putting additional pressure on AppLovin.

From the technical point of view, NASDAQ made an attempt to settle below the support at 29,200 – 29,250 but failed to develop sufficient downside momentum and rebounded towards the 29,500 level. In case NASDAQ manages to settle above 29,500, it will head towards the resistance level at 29,850 – 29,900.

If NASDAQ climbs above the 29,900 level, it will head towards the next resistance at 30,350 – 30,400. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Dow Jones Tests Support At 54,000 – 54,100

Dow Jones pulled back as most stocks in the index moved lower. Salesforce, which was down by -3.7%, was the biggest loser in the Dow Jones index today. The stock found itself under strong pressure amid falling demand for software stocks. From a big picture point of view, traders remain worried that AI revolution would hurt the business of software companies.

Dow Jones attempts to settle below the support level at 54,000 – 54,100. If Dow Jones manages to settle below the 54,000 level, it will head towards the next support, which is located in the 53,300 – 53,400 range. A move below the 53,300 level will open the way to the test of the 50 MA at 53,006.

On the upside, Dow Jones needs to settle back above the 54,100 level to gain upside momentum in the near term. In this case, Dow Jones will head towards the resistance at 54,600 – 54,700.

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