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

Key Insights

• SP500 declined below the 4570 level amid profit-taking. 
• NASDAQ found itself under pressure as regulatory filings indicated that Mark Zuckerberg was selling Meta stock in November. 
• Dow Jones moved lower due to the pullback in the tech sector. 

SP500

SP500 pulled back as traders took some profits off the table near multi-month highs. Treasury yields rebounded from recent lows, which was bearish for equity markets. Today, traders also focused on the Factory Orders report, which indicated that Factory Orders declined by 3.6% in October. FedWatch Tool shows that traders expect that Fed will start cutting rates in March 2024, which is bullish for stocks. However, it looks that major indices need additional catalysts to move higher.

From the technical point of view, SP500 remains stuck near the key resistance at 4575 – 4600. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ pulled back as traders took profits in tech stocks. NVIDIA is down by 3.3% as traders worry that company’s sales in China would decline due to U.S. efforts to limit China’s access to high-end chips. Meta is down by 2.4% as regulatory filings indicate that Mark Zuckerberg sold $185 million worth of stock in November,

Currently, NASDAQ is trying to settle below the support at 15,800 – 15,900. In case this attempt is successful, NASDAQ will head towards the next support level, which is located in the 15,200 – 15,350 range.

Dow Jones

Dow Jones is also losing ground amid a broad pullback in the equity markets. The pullback is led by Intel, Salesforce, and Microsoft stocks.

In case Dow Jones settles below the 36,000 level, it will head towards the nearest support at 35,550 – 35,700. Interestingly, RSI remains in the overbought territory despite the pullback, so Dow Jones has a decent chance to gain downside momentum in the near term.

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