NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Away From Session Highs On Profit-Taking

SP500

SP500 pulled back from session highs as traders took some profits off the table after the strong rally. From a big picture point of view, traders stay focused on dovish Fed policy outlook. U.S. Treasury Secretary Scott Bessent said that Fed should cut rates by as much as 150 basis points. He added that cutting rates by 50 basis points at the meeting in September would be a good start. Treasury yields moved lower as bond traders decided that rate cuts are inevitable. Most market sectors moved higher in today’s trading session. Healthcare and consumer cyclical stocks were among the biggest gainers, while consumer defensive stocks found themselves under pressure.

The nearest resistance level for SP500 is located in the 6475 – 6485 range. If SP500 climbs above 6485, it will head above the 6500 level. On the support side, a move below the support at 6430 – 6440 will open the way to the test of the next support level at 6340 – 6350.

NASDAQ

NASDAQ has also moved away from session highs amid profit-taking. Advanced Micro Devices, which was up by 5.4%, was among the biggest gainers in the NASDAQ index today.

NASDAQ faced resistance near 23,950 and pulled back towards the 23,800 level. If NASDAQ settles below 23,800, it will get to the test of the nearest support at 23,700 – 23,800.

Dow Jones

Dow Jones moved higher as Unitedhealth Group gained 3.8%. The stock continues to rebound from multi-year lows.

From the technical point of view, Dow Jones settled above the previous resistance at 44,500 – 44,600 and is moving towards the next resistance level, which is located in the 45,000 – 45,100 range. A move above the 45,100 level will provide Dow Jones with an opportunity to gain additional upside momentum. RSI is close to the overbought territory, but there is enough room to gain momentum in the near term.

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