NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Lower As Traders Take Profits Ahead Of CPI Report

SP500

SP500 is losing some ground as traders wait for inflation data, which will be released tomorrow. Analysts expect that Inflation Rate increased from 2.7% in June to 2.8% in July. Core Inflation Rate is expected to increase from 2.9% to 3.0%. Consumer cyclical and consumer defensive stocks are among the biggest gainers in the SP500 index today as demand for safe-haven assets increased. Energy stocks were among the biggest losers in the SP500 index despite the rebound in the oil markets.

In case SP500 settles below the 6380 level, it will head towards the nearest support level, which is located in the 6340 – 6350 range. On the upside, a move above the 6400 level will open the way to the test of the resistance at 6430 – 6440.

NASDAQ

NASDAQ moved away from recent highs as traders took some profits off the table ahead of the key inflation report. Tesla, which was up by 3.7%, was among the biggest gainers in the NASDAQ index today.

From the technical point of view, NASDAQ is heading towards the support level at 23,450 – 23,500. If NASDAQ manages to settle below this level, it will head towards the 50 MA at 23,294. A move below the 50 MA will push NASDAQ towards the support at 23,150 – 23,200.

Dow Jones

Dow Jones tests support at 43,900 – 44,000 amid broad pullback in the equity markets. IBM, which is down by 2.7%, is the worst performer in the Dow Jones index today. The stock remains under pressure after the earnings report, which was released in late July.

A successful test of the support at 43,900 – 44,000 will push Dow Jones towards the next support level at 43,300 – 43,400. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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