NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Lower Amid Profit-Taking

SP500

SP500 pulls back amid valuation worries. Traders take some profits off the table in absence of economic reports due to U.S. government shutdown. Rising Treasury yields put additional pressure on the SP500 index. The pullback was broad, and all market sectors found themselves under pressure in today’s trading session. Basic materials stocks were among the biggest losers as traders reacted to the sell-off in precious metals markets.

SP500 failed to settle above the resistance at 6760 – 6770 and pulled back towards the 50 MA at 6722. In case SP500 settles below the 50 MA, it will get to the test of the nearest support, which is located in the 6700 – 6710 range. A move below the 6700 level will open the way to the test of the next support at 6610 – 6620.

NASDAQ

NASDAQ moved lower as tech stocks declined amid profit-taking. Strategy, which was down by 3.3%, was among the biggest losers in the NASDAQ index today. The stock pulled back as Bitcoin  made an attempt to settle below the $120,000 level.

If NASDAQ pulls back below the 25,000 level, it wil head towards the 50 MA at 24,881. A move below the 50 MA will push NASDAQ towards the support at 24,750 – 24,800.

Dow Jones

Dow Jones is under pressure amid broad pullback in the equity markets. Boeing, which is down by 3.8%, is the worst performer in the Dow Jones index today.

Currently, Dow Jones is moving towards the nearest support level, which is located in the 46,100 – 46,200 range. A successful test of this level will open the way to the test of the next support at 45,700 – 45,800. RSI remains 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.