SP500 tested resistance at 4575 – 4600 but lost momentum and pulled back.
NASDAQ tested new highs but moved back towards the 16,000 level amid profit-taking.
Dow Jones climbed towards the key resistance at 35,550 – 35,700.
SP500 291123 4h Chart
SP500 made an attempt to settle above the resistance at 4575 – 4600 as traders reacted to the better-than-expected GDP Growth Rate report. The report indicated that GDP Growth Rate was 5.2% in the third quarter, compared to analyst consensus of 5%. The U.S. economy remains in a good shape despite recession worries, which is bullish for stocks. Meanwhile, Treasury yields continued to move lower, providing additional support to major indices.
It should be noted that SP500 pulled back from session highs despite the encouraging report. Some traders want to take profits off the table near multi-month highs. SP500 faced strong resistance in the 4575 – 4600 range in July, and it looks that it will not be easy to move above this level.
NASDAQ 291123 4h Chart
NASDAQ has also pulled back from session highs. The index moved back towards the 16,000 level amid profit-taking. Demand for tech stocks remains strong, but it looks that the market is not ready for a decisive move.
The rally from October lows was too strong, and NASDAQ needs more time for consolidation before it will be able to move higher.
Dow Jones 291123 4h Chart
Dow Jones tests new highs, supported by the strong performance of Salesforce and Intel stocks. Today’s move is broad, and the majority of Dow Jones components are moving higher. Walmart, which is down by 1.7%, is the worst performer in the Dow Jones index today.
Dow Jones is currently trying to settle above the resistance at 35,550 – 35,700. RSI has already moved into the overbought territory, so it remains to be seen whether Dow Jones will be able to climb above this key level without a pullback.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.