NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Western Digital Dives 8%

SP500

SP500 is losing some ground amid strong pullback in the tech sector. Healthcare stocks have also found themselves under pressure in today’s trading session. It should be noted that most market sectors gained ground. Consumer defensive stocks were among the biggest gainers amid rising demand for safe-haven assets. Energy stocks have also managed to gain strong momentum as traders focused on the rebound in the oil markets. Today, traders had a chance to take a look at the Initial Jobless Claims report. The report showed that 208,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 210,000. The better-than-expected report did not provide material support to major indices as tech stocks declined.

The technical picture remains unchanged as SP500 needs to settle above the resistance at 6940 – 6950 to gain additional upside momentum in the near term. A move above 6950 will push SP500 towards the 7000 level.

NASDAQ

NASDAQ retreats as tech stocks decline. Seagate Technology Holdings and Western Digital are the biggest losers in the NASDAQ index today. The stocks are losing ground as traders continue to take profits after the strong rally.

Currently, NASDAQ is trying to settle below the 50 MA at 25,512. In case this attempt is successful, NASDAQ will head towards the nearest support level, which is located in the 25,200 – 25,250 range. A move below the 25,200 level will open the way to the test of the support at 24,800 – 24,850.

Dow Jones

Dow Jones gained ground, supported by rising demand for consumer stocks. Home Depot, which was up by 3.6%, was the best performer in the Dow Jones index today.

From the technical point of view, Dow Jones received support in the 48,700 – 48,800 range and rebounded towards the 49,300 level. A move above this level will push Dow Jones towards the resistance at 49,500 – 49,600.

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