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

SP500 Rebounds On Dip-Buying

SP500 rebounded from session lows as traders reacted to escalation in the Middle East and focused on the sell-off in the tech sector.

Iran shot down a U.S. military helicopter in the Strait of Hormuz. President Trump said that pilots were safe and uninjured and added that the United States would respond to this attack.

WTI oil pulled back by -3.5% despite Trump’s comment. Oil traders bet that U.S. and Iran will be able to reach a deal.

Treasury yields have also moved lower despite geopolitical tensions. The yield of 2-year Treasuries declined towards the 4.12% level, while the yield of 10-year Treasuries settled near 4.52%. Falling Treasury yields did not provide material support to SP500 in today’s trading session.

Today, traders had a chance to take a look at the Existing Home Sales report. The report indicated that Existing Home Sales increased by +3.2% month-over-month in May, compared to analyst forecast of +0.5%.

Most market sectors moved higher in today’s trading session. Real Estate stocks were among the biggest gainers as traders reacted to the strong Existing Home Sales report and focused on falling Treasury yields.

Tech stocks found themselves under strong pressure as traders worried about valuations and took profits after multi-week rally. Energy stocks moved lower amid strong pullback in the oil markets.

Currently, SP500 is trying to settle back above the support level at 7350 – 7360. In case this attempt is successful, SP500 will head towards the next support, which is located in the 7425 – 7435 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ Tested New Lows

NASDAQ has also managed to rebound from session lows as some traders were ready to buy the dip. However, NASDAQ remains in the negative territory.

Marvell Technology, which was down by -9%, was the biggest loser in the NASDAQ index today. The stock suffered a sell-off as traders continued to take profits after the strong rally.

Qualcomm, Advanced Micro Devices and Micron were among the losers today amid profit-taking.

If NASDAQ stays above the support level at 28,750 – 28,800, it will move towards the resistance level, which is located in the 29,250 – 29,300 range.

On the support side, a move below the support at 28,750 – 28,800 will open the way to the test of the support level at 28,250 – 28,300.

Dow Jones Stays Range-Bound

Dow Jones climbed back above the support at 50,400 – 50,500 as traders bought the dip. Salesforce and Apple were the biggest losers in the Dow Jones index amid sell-off in the tech sector.

The nearest resistance level for Dow Jones is located in the 51,000 – 51,100 range. In case Dow Jones manages to settle above the 51,100 level, it will head towards the next resistance at 51,600 – 51,700. A move above the 51,700 level will push Dow Jones towards the 52,000 level.

On the support side, a successful test of the support at 50,400 – 50,500 will open the way to the test of the psychologically important 50,000 level.

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