NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Traders Take Some Profits Off The Table

SP500

SP500 is losing ground as traders continue to take profits off the table ahead of the Fed Interest Rate Decision, which will be released tomorrow. The absence of tariff news served as an additional bearish catalyst for major indices. President Trump said that he would reveal pharma tariffs over the next two weeks. Not surprisingly, healthcare stocks were among the biggest losers in the SP500 index today. Moderna and Vertex Pharmaceuticals, which were down by 12%, suffered the strongest sell-offs. In Vertex Pharmaceuticals’ case, traders reacted to the disappointing quarterly report.

From the technical point of view, SP500 found support in the 5590 – 5600 range and is trying to gain upside momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If SP500 manages to settle above the 5650 level, it will move towards the nearest resistance, which is located at the recent highs at 5700 – 5710.

NASDAQ

NASDAQ has also found itself under pressure as demand for tech stocks declined ahead of the Fed decision. However, NASDAQ managed to rebound from session lows and is moving towards the resistance at 19,950 – 20,000.

If NASDAQ climbs above the 20,000 level, it will head towards the resistance level at 20,350 – 20,400.

Dow Jones

Dow Jones moved lower as healthcare stocks declined. Merck, AMGEN, and Unitedhealth Group were the biggest losers in the Dow Jones index today.

Currently, Dow Jones is trying to settle below the support at 40,900 – 41,000. In case this attempt is successful, Dow Jones will move towards the 50 MA at 40,590. A move below the 50 MA will open the way to the test of the next support level, which is located in the 40,000 – 40,100 range.

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