NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Take Profits After Friday’s Rally

SP500

SP500 is losing some ground as traders react to economic reports. New Home Sales declined by -0.6% month-over-month in July, compared to analyst consensus of -1.1%. Dallas Fed Manufacturing Index decreased from +0.9 in July to -1.8 in August, compared to analyst forecast of +0.2. Today, traders also had a chance to take a look at the Chicago Fed National Activity Index. The report indicated that Chicago Fed National Activity Index decreased from -0.18 in June to -0.19 in July, mostly in line with analyst forecast. Most market sectors moved lower in today’s trading session. The pullback was led by healthcare and consumer defensive stocks. Meanwhile, tech stocks moved higher.

In case SP500 stays above the 6450 level, it will head towards the resistance at 6480 – 6490. On the support side, a move below 6450 will open the way to the test of the support level at 6430 – 6440.

NASDAQ

NASDAQ gained some ground amid rising demand for tech stocks. Tesla, which was up by 2.3%, was the biggest gainer in the NASDAQ index today.

From the technical point of view, NASDAQ continues its attempts to settle above the resistance at 23,450 – 23,500. In case NASDAQ settles above 23,500, it will gain additional upside momentum and move towards the next resistance level at 23,900 – 23,950.

Dow Jones

Dow Jones pulled back as traders took some profits off the table after the recent rally. The pullback was broad, and most stocks in the Dow Jones index moved lower in today’s trading session. NVIDIA and Nike were the only gainers in the index.

Dow Jones faced resistance in the 45,700 – 45,800 range and pulled back. Currently, Dow Jones is trying to settle below the 45,300 level. In case this attempt is successful, Dow Jones will move towards the nearest support level at 45,000 – 45,100.

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