SP500 Is Flat As Traders Focus On Banks’ Earnings Reports
SP500 is swinging between gains and losses as traders focus on banks’ earnings reports and react to recent developments in the Middle East.
Bank stocks have mostly moved lower after the release of earnings reports. Citigroup was down by -4%, while Wells Fargo pulled back by -2%.
Houthis continued to attack Saudi Arabia, but oil prices did not gain strong momentum. WTI oil gained +1%, while Brent oil was mostly flat. Oil traders decided to take some profits off the table despite escalation in the Middle East.
Treasury yields pulled back despite worries about high oil prices. The yield of 2-year Treasuries declined below the 4.79% level, while the yield of 10-year Treasuries settled below 5.22%. FedWatch Tool indicates that the probability of a rate hike at the next meeting has increased to 23.8%, but bond traders are not worried about a potential rate hike in October.
Energy stocks were among the biggest gainers today as traders focused on rising WTI oil and natural gas prices. Utilities stocks moved higher as Treasury yields pulled back. Healthcare and industrials stocks found themselves under pressure in today’s trading session.
SP500 moved away from session lows and climbed back towards the resistance level at 7815 – 7825. If SP500 manages to settle above the 7825 level, it will head towards recent highs near the 7850 level. A move above 7850 will open the way to the test of the 7900 level.
On the support side, SP500 needs to settle below the 50 MA at 7783 to gain downside momentum in the near term. In this case, SP500 will move towards the support level at 7720 – 7730.
NASDAQ Retreats Amid Pullback In Memory Chip Sector
NASDAQ is losing ground amid pullback in the tech sector. Traders are worried that a new memory chip from China may lead to a price war in the memory sector. I’d note that memory chips have historically suffered from boom – bust cycles, so it’s not surprising to see that some traders have decided to take money off the table after the strong rally in memory stocks.
In case NASDAQ manages to settle below the 30,400 level, it will head towards the nearest support, which is located in the 30,200 – 30,250 range. A move below the 30,200 level will push NASDAQ towards the 30,000 level.
On the upside, a successful test of the resistance at 30,750 – 30,800 will push NASDAQ towards the 50 MA at 30,911. If NASDAQ manages to settle above the 50 MA, it will head towards the resistance level at 31,350 – 31,400.
Dow Jones Price Forecast
Every new Dow Jones analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Dow Jones forecastsDow Jones Tests Support At 51,600 – 51,700
Dow Jones pulled back as Johnson & Johnson declined by -5.6%. The stock declined as CFO said that the company preferred to spin off orthopedics business over selling it.
Currently, Dow Jones is trying to settle below the support at 51,600 – 51,700. In case this attempt is successful, Dow Jones will head towards the 50 MA at 51,385. A move below the 50 MA will open the way to the test of the support level at 51,100 – 51,200.
For a look at all of today’s economic events, check out our economic calendar.
