SP500 moved below the 4550 level as traders reacted to economic reports.
NASDAQ remains stuck near the 15,600 level.
Dow Jones made an attempt to settle above 35,500 but lost momentum and pulled back.
SP500 281123 4h Chart
SP500 settled below the 4550 level as traders took some profits off the table near multi-month highs. Today, traders focused on the Case-Shiller Home Price Index report, which showed that home prices increased by 0.2% month-over-month in September, compared to analyst consensus of +0.3%. CB Consumer Confidence declined from 102.6 in October to 102 in November, while analysts expected that it would drop to 101. The yield of 2-year Treasuries pulled back below the 4.80% level as traders reacted to the dovish comments of Fed Governor Christopher Waller, who signaled that Fed would start cutting rates in 2024. Fed policy outlook is an extremely important catalyst for equity markets, but stocks need additional catalysts to test new highs after a strong rally.
From the technical point of view, SP500 remains stuck below the key resistance level, which is located in the 4575 – 4600 range.
NASDAQ 281123 4h Chart
NASDAQ pulled back below the 16,000 level amid profit-taking. The index has been moving back and forth in recent trading sessions as traders waited for significant catalysts.
The nearest support level for NASDAQ is located in the 15,700 – 15,800 range. If NASDAQ declines below the 15,700 level, it will head towards the next support, which is located at 15,200 – 15,350.
Dow Jones 281123 Daily Chart
Dow Jones gained some ground in today’s trading session, although its attempt to settle above the 35,500 level was not successful. From a big picture point of view, traders are waiting for catalysts. At the same time, the general market sentiment remains bullish as profit-taking does not trigger a pullback.
Dow Jones needs to settle above the 35,700 level to gain additional upside momentum. On the support side, the nearest support level for Dow Jones is located in the 34,650 – 34,800 range.
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.