NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Are Flat In Quiet Trading

Key Insights

• SP500 tried to climb above the 4800 level but lost momentum and pulled back. 
• NASDAQ did not manage to test the 17,000 level as traders decided to take some profits off the table. 
• Dow Jones was little changed in absence of catalysts. 

SP500

SP500 is mostly flat as traders wait for catalysts. SP500 is close to historic highs, so the index needs significant catalysts to move above 4820. Treasury yields tested new lows today as bond traders bet on dovish Fed. However, falling yields did not provide material support to major indices, and it looks that some traders decided to take profits near historic highs. Healthcare and Consumer Defensive stocks are moving higher today as traders increase their positions in defensive sectors. Meanwhile, Energy stocks have found themselves under pressure as traders reacted to the pullback in the oil markets.

From the technical point of view, SP500 needs to climb above the 4800 level to test the resistance at 4810 – 4820. A move above 4820 will provide SP500 with an opportunity to gain strong upside momentum.

NASDAQ

NASDAQ made an attempt to climb above the 16,950 level but lost momentum and pulled back. Trading is calm in absence of strong catalysts. Traders are happy with NASDAQ’s performance in 2023 and wait for the next year.

The nearest support level for NASDAQ is located in the 16,750 – 16,800 range. A move below 16,750 may trigger a pullback, which could be driven by profit-taking.

Dow Jones

Dow Jones is flat in choppy trading. There are no notable gainers or losers in the Dow Jones index today. The trading session is rather boring, and it looks that many traders are still enjoying their vacations.

In case Dow Jones pulls back below the support at 37,400 – 37,500, it will head 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.