NASDAQ Index, SP500, Dow Jones Forecasts – Stock Pull Back Amid Profit-Taking

Key Insights

• SP500 pulls back after an unsuccessful attempt to settle above the 4800 level. 
• NASDAQ tested support at 16,750 – 16,800 as traders took some profits off the table. 
• Dow Jones settled below the 37,700 level. 

SP500

SP500 is losing ground as traders take some profits off the table during the final trading session of the year. Today, traders focused on Chicago PMI report, which showed that Chicago PMI declined from 46.9 in December to 55.8 in November, compared to analyst consensus of 51. Today’s pullback is broad, and all market segments are moving lower. The yield-sensitive Real Estate and Utilities stocks are among the biggest losers in SP500 today as traders focus on the continuation of the rebound in Treasury yields. From a big picture point of view, SP500 needs material catalysts to settle above the 4800 level, so it’s not surprising to see that some traders decided to move out of their long positions ahead of the new year.

The nearest support level for SP500 is located in the 4730 – 4750 range. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum.

NASDAQ

NASDAQ is losing ground amid profit-taking. The pullback is led by PayPal shares, which are down by 2.7% in today’s trading session. There are no notable gainers in the NASDAQ index today.

NASDAQ has recently made an attempt to settle below the support at 16,750 – 16,800. If NASDAQ declines below 16,750, it will head towards the next support level at 16,400 – 16,500.

Dow Jones

Dow Jones is moving lower amid a broad pullback in the equity markets. Dow Jones bulls have enjoyed a huge rally from October lows, so it is not surprising to see that they want to take some profits ahead of the new year.

If Dow Jones declines below the nearest support at 37,400 – 37,500, it will move towards the next support level at 36,900 – 37,000.

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