NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back From Session Highs Amid Profit-Taking

SP500

SP500 pulled back as traders reacted to the U.S. – EU trade deal. The U.S. will impose a 15% tariff on most European goods, while the EU will reduce some of its own tariffs to 0%. The deal provided significant support to the U.S. dollar and pushed Treasury yields higher. Today, traders had a chance to take a look at the Dallas Fed Manufacturing Index report for July. The report showed that Dallas Fed Manufacturing Index increased from -12.7 to +0.9, compared to analyst forecast of -8. Energy stocks were among the biggest gainers in the SP500 index today as traders reacted to the rally in the oil markets. Basic materials stocks found themselves under pressure amid pullback in precious metals markets. From a big picture point of view, traders used the trade deal news as an opportunity to take some profits off the table near historic highs.

If SP500 settles below the 6390 level, it will head towards the nearest support, which is located in the 6340 – 6350 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ moved away from session highs amid profit-taking. Currently, NASDAQ is trying to settle below the 23,300 level.

In case this attempt is successful, NASDAQ will head towards the nearest support at 23,150 – 23,200. A move below this level will open the way to the test of the next support at 22,850 – 22,900.

Dow Jones

Dow Jones is losing ground as traders take profits near historic highs. Nike, which is up by 3.8%, is the biggest gainer in the Dow Jones index today. The stock rallied as JP Morgan upgraded Nike from Neutral to Overweight.

In case Dow Jones settles below the support at 44,600 – 44,700, it will move towards the next support level at 43,900 – 44,000.

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