NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Traders Sell Chip Stocks

SP500

SP500 pulls back as tech stocks decline amid profit-taking. Most market segments gained ground in today’s trading session, but the pullback in tech stocks put pressure on SP500. Today, traders had a chance to take a look at the Initial Jobless Claims report, which indicated that 238,000 Americans filed for unemployment benefits in a week. Analysts expected that Initial Jobless Claims would total 235,000, so the report exceeded estimates. Philadelphia Fed Manufacturing Index declined from 4.5 in May to 1.3 in June, compared to analyst consensus of 5. Building Permits declined by 3.8% month-over-month in May, while Housing Starts decreased by 5.5%. Overall, the reports missed analyst estimates, but market sentiment in most segments remained bullish.

SP500 faced resistance in the 5520 – 5530 range and moved below the 5500 level, In case SP500 declines below 5470, it will head towards the nearest support, which is located in the 5440 – 5450 range.

NASDAQ

NASDAQ moved lower as traders took profits near historic highs. The pullback was led by chip stocks, including Qualcomm, Micron, and Microchip Technology.

The nearest support level for NASDAQ is located in the 19,600 – 19,650 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. A move below the 19,600 level will open the way to the test of the next support at 18,900 – 18,950.

Dow Jones

Dow Jones tests new highs amid rising demand for energy and financial stocks. It looks that traders took money from the sales of tech stocks and used it to buy stocks from other market segments.

From the technical point of view, Dow Jones is trying to settle above the resistance at 39,000 – 39,100. In case this attempt is successful, Dow Jones will move towards the next resistance, which is located in the 39,700 – 39,800 range.

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