NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As SpaceX Pulls Back

SP500 Retreats As Retail Sales Drop

SP500 moved lower as traders focused on the weak Retail Sales report. The report indicated that Retail Sales declined by -0.6% month-over-month in July, compared to analyst forecast of +0.1%. Retail Sales Ex Autos decreased by -0.3%, compared to analyst consensus of +0.2%.

Today, traders also had a chance to take a look at the Michigan Consumer Sentiment report. The report showed that Consumer Sentiment declined from 55.2 in July to 51.0 in August, compared to analyst forecast of 54.5.

Current Economic Conditions decreased from 54.8 in July to 51.8 in August, while Index of Consumer Expectations pulled back from 55.4 to 50.6.

Year-ahead inflation expectations increased from 4.2% in July to 4.3% in August. Long-run inflation expectations remained unchanged at 3.3%.

Treasury yields moved higher as bond traders focused on rising oil prices. The yield of 2-year Treasuries settled above the 4.17% level, while the yield of 10-year Treasuries moved towards 4.70%. Rising Treasury yields put some pressure on SP500 today.

Energy stocks were among the biggest gainers today as traders focused on rising oil markets. Basic materials stocks have also gained upside momentum in today’s trading session. Tech stocks pulled back amid profit-taking.

In case SP500 settles below the 7790 level, it will head towards the 50 MA at 7757. A move below the 50 MA will push SP500 towards the support at 7720 – 7730.

On the upside, a successful test of the resistance at 7790 – 7800 will push SP500 towards the 7850 level.

NASDAQ Moves Lower Amid Falling Demand For Tech Stocks

NASDAQ pulled back as traders focused on rising Treasury yields and took some profits off the table in tech stocks. Several AI-related names, including Micron, managed to gain some ground in today’s trading session. SpaceX  pulled back by -1.2% as traders continued to take profits after the strong rebound from historic lows.

The nearest support level for NASDAQ is located in the 29,850 – 29,900 range. A successful test of this level will open the way to the test of the 50 MA at 29,724. In case NASDAQ declines below the 50 MA, it will move towards the support level at 29,450 – 29,500.

Dow Jones Remains Stuck Near The 53,750 Level

Dow Jones pulled back as traders focused on economic data and rising oil prices. Salesforce, which was down by -2.4%, was the biggest loser in the Dow Jones index today. The stock moved lower as traders took some profits off the table after the recent move, which was triggered by JPMorgan’s analysis of the company. Cisco  declined by -1.4% amid falling demand for tech stocks.

The technical picture remained unchanged as Dow Jones continued its attempts to settle below the 53,750 level. In case Dow Jones manages to settle below this level, it will head towards the nearest support, which is located in the 53,300 – 53,350 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

On the upside, the nearest resistance level for Dow Jones is located in the 54,000 – 54,100 range. If Dow Jones climbs above the 54,100 level, it will move towards the next resistance at 54,600 – 54,700.

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