NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Tesla Dives 12%

SP500

SP500 is swinging between gains and losses as traders react to trade war news and focus on the Initial Jobless Claims report. U.S. President Trump and Chinese President Xi agreed to continue trade talks between the world’s biggest economies. According to Trump, negotiations would start soon. Interestingly, the news did not provide sufficient support to SP500. It looks that traders are worried that U.S. and China may not reach a comprehensive trade deal. Initial Jobless Claims report showed that 247,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 235,000. The recent ADP Employment Change report has also missed analyst expectations, so traders may start to worry about the situation in the job market ahead of tomorrow’s Non Farm Payrolls report.

SP500 has recently made an attempt to settle above the resistance at 6000 – 6010 but lost momentum and pulled back. If SP500 settles below the 5950 level, it will head towards the nearest support at 5910 – 5920.

NASDAQ

NASDAQ is moving lower as Tesla stock is down by 12%. Elon Musk and Donald Trump criticized each other, and traders worry that this situation may have a negative impact on Tesla.

The nearest support level for NASDAQ is located in the 21,450 – 21,500 range. A move below the 21,450 level will push NASDAQ towards the next support at 20,950 – 21,000. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones gained some ground in choppy trading. The pullback in consumer defensive stocks did not put material pressure on the index.

The technical picture remained unchanged as Dow Jones was stuck between the support level at 42,000 – 42,100 and the resistance level at 42,700 – 42,800.

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