NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Sandisk Dives 13%

SP500 Tests Support At 7540 – 7550

SP500 pulled back as traders reacted to economic reports and focused on Fed policy outlook.

Retail Sales  increased by +0.2% month-over-month in June, in line with analyst estimates. Retail Sales Ex Autos decreased by -0.2%, while analysts expected that they would fall by -0.1%.

NAHB Housing Market Index declined from 36 (revised from 35) in June to 34 in July. According to the report, 37% of builders cut prices in July. The average price reduction was 6%.

Pending Home Sales decreased by -5.4% month-over-month in June, compared to analyst forecast of -0.5%. On a year-over-year basis, Pending Home Sales decreased by -0.3%. The report showed that high mortgage rates and rising median home prices put pressure on the housing market.

Initial Jobless Claims report indicated that 208,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 217,000. The report showed that the job market remained in decent shape.

Oil prices moved lower as traders bet that U.S. and Iran would resume negotiations despite mutual attacks. Lower oil prices did not provide support to SP500 in today’s trading session.

Treasury yields gained ground as bond traders bet on hawkish Fed. According to FedWatch Tool, the market expects that Fed will raise rates in September.

Consumer defensive, real estate, and healthcare stocks were among the biggest gainers today as demand for safe-haven assets increased. Tech stocks found themselves under strong pressure amid valuation worries. Basic materials stocks have also moved lower as traders focused on the strong pullback in precious metals markets.

Currently, SP500 is trying to settle below the support level at 7540 – 7550. In case this attempt is successful, SP500 will head towards the next support, which is located in the 7450 – 7460 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

NASDAQ Pulls Back Amid Valuation Worries

NASDAQ is losing ground amid sell-off in the tech sector. Sandisk, which is down by -13%, is the biggest loser in the NASDAQ index today. Western Digital and Seagate  have also found themselves under strong pressure.

NASDAQ pulled back below the previous support at 29,350 – 29,400 and declined towards the 29,000 level. In case NASDAQ manages to settle below 29,000, it will head towards the nearest support, which is located in the 28,800 – 28,850 range.

Dow Jones Tests The 52,500 Level

Dow Jones is moving lower amid broad pullback in the equity markets. Alphabet, which is down by 4.7%, is among the biggest losers in the Dow Jones index today. The company’s shares are moving lower amid reports indicating that Gemini 3.5 Pro model would be delayed.

Currently, Dow Jones is trying to settle below the 52,500 level. In case this attempt is successful, Dow Jones will move towards the nearest support, which is located in the 52,100 – 52,200 range.

On the upside, a move above the 50 MA at 52,600 will open the way to the test of the nearest resistance level at 52,700 – 52,800. In case Dow Jones climbs above the 50 MA, it will move towards the resistance at 53,300 – 53,400.

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