NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Mixed As Traders Take Profits Near Historic Highs

SP500

SP500 pulls back as traders take some profits off the table near all-time highs. Today, traders had a chance to take a look at the New Home Sales report for January. The report indicated that New Home Sales increased by 1.5% on a month-over-month basis, compared to analyst consensus of +0.9%. Dallas Fed Manufacturing Index improved from -27.4 in January to -11.3 in February, while analysts expected that it would grow to -8. Traders have mostly ignored the reports as they remained focused on the dynamics of tech stocks. Treasury yields rebounded after Friday’s pullback, putting additional pressure on major indices.

From the technical point of view, SP500 did not manage to settle above the 5100 level and pulled back towards 5080. In case SP500 settles below 5080, it will gain additional downside momentum and move towards the nearest support level at 5040 – 5050.

NASDAQ

NASDAQ remained stuck below the key resistance at 18,000 – 18,050. NVIDIA made an attempt to settle above the $800 level, but this attempt yielded no results. However, demand for the leading AI stock stays strong, which is bullish for NASDAQ.

NASDAQ needs to settle above the 18,050 level to gain additional upside momentum. On the support side, a move below 17,900 may trigger a wave of profit-taking and push NASDAQ towards the nearest support at 17,450 – 17,500.

Dow Jones

Dow Jones  pulled back after an unsuccessful attempt to settle above the resistance at 39,250 – 39,300. Verizon, which was down by 2.9%, was the worst performer in the Dow Jones index today.

In case Dow Jones settles back below the 39,000 level, it will move towards the nearest support at 38,500 – 38,550. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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