NASDAQ Index, SP500, Dow Jones Forecasts – SP500 Winning Streak Is Broken Ahead Of CPI Report

SP500 Retreats As Traders Prepare For Inflation Data

SP500 is losing ground as traders wait for tomorrow’s CPI report and react to recent developments in the Middle East.

The CPI report is expected to show that Inflation Rate declined from 3.5% in June to 3.4% in July. Core Inflation Rate is projected to decrease from 2.6% to 2.5%.

Oil prices gained 1% as traders bet that U.S. and Iran would not reach a deal in the near term. Interestingly, Pakistan’s Defense Minister said that the countries were close to some kind of a deal, but the oil market had mostly ignored his comments.

Treasury yields pulled back despite rising oil markets. The yield of 2-year Treasuries declined below the 4.22% level, while the yield of 10-year Treasuries settled near 4.68%. Falling Treasury yields did not provide support to SP500 today as traders decided to take some profits off the table ahead of CPI data.

Traders also focused on the Existing Home Sales report. The report indicated that Existing Home Sales decreased by -1.7% month-over-month in July, compared to analyst forecast of -0.7%.

Utilities stocks were among the biggest gainers today as demand for safe-haven assets increased. Energy stocks gained ground as traders focused on rising oil prices.

Currently, SP500 is trying to settle below the support at 7720 – 7730. In case SP500 manages to settle below the 7720 level, it will head towards the 50 MA at 7669. A move below the 50 MA will open the way to the test of the next support level at 7615 – 7625.

NASDAQ Moves Lower As SpaceX Dives 5%

NASDAQ pulls back as traders focus on rising oil prices and limit their risks ahead of tomorrow’s CPI report. SpaceX, which is down by -5%, is among the biggest losers in the NASDAQ index today. The stock remains volatile after the recent earnings report.

In case NASDAQ manages to settle below the 29,500 level, it will head towards the nearest support at 29,200 – 29,250. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the upside, the nearest resistance level for NASDAQ is located in the 29,850 – 29,900 range. In case NASDAQ manages to settle above the 29,900 level, it will head towards the next resistance level at 30,350 – 30,400.

Dow Jones Attempts To Settle Below 53,750

Dow Jones is losing ground amid broad pullback in the equity markets. Honeywell, which is down by -4.3%, is the biggest loser in the Dow Jones index today. Alphabet, which pulled back by -3.3%, has also gained strong downside momentum in today’s trading session.

From the technical point of view, Dow Jones failed to settle above the resistance level at 54,000 – 54,100 and pulled back towards the 53,750 level. If Dow Jones settles below 53,750, it will head towards the 50 MA at 53,621. A move below the 50 MA will open the way to the test of the support level at 53,300 – 53,400.

On the upside, a successful test of the resistance level at 54,000 – 54,100 will push Dow Jones towards the resistance level at 54,600 – 54,700.

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