NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As PayPal Dives 19%

SP500

SP500 is losing ground after an unsuccessful attempt to settle above the 7000 level. From a big picture point of view, traders rush to take profits in absence of additional positive catalysts. JOLTs Job Openings report was not released today due to partial government shutdown, leaving traders without key information about the situation in the job market. Basic materials stocks were among the biggest gainers today as traders reacted to the rebound in precious metals markets. Energy stocks have also moved higher as traders focused on rising oil and natural gas markets. Consumer defensive and utilities stocks enjoyed support amid rising demand for safe-haven assets.

Currently, SP500 is trying to settle below the support at 6870 – 6880. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 6790 – 6800 range.

NASDAQ

NASDAQ is under strong pressure amid sell-off in the tech sector. PayPal, which is down by 19%, is the worst performer in the NASDAQ index today. The stock suffered a sell-off as traders reacted to the weak earnings report and disappointing outlook. The company also replaced its CEO.

In case NASDAQ manages to settle below the support at 25,200 – 25,250, it will head towards the next support level at 24,700 – 24,750. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. IBM, which is down by 8%, is the biggest loser in the Dow Jones index today.

From the technical point of view, Dow Jones failed to settle above the resistance at 49,500 – 49,600 and declined towards the support at 48,700 – 48,800. If Dow Jones manages to settle below the 48,700 level, it will head towards the next support at 47,900 – 48,000.

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