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

Key Insights

• SP500 pulled back towards the 4700 level. 
• NASDAQ moved lower as traders were cautious near all-time high levels. 
• Dow Jones declined from session highs amid a broad pullback in the equity markets.  

SP500

SP500 pulls back as traders take some profits off the table after the strong rally. Today, traders focused on the Retail Sales report, which indicated that Retail Sales increased by 0.3% month-over-month in November, compared to analyst consensus of -0.1%. Retail Sales Ex Autos grew by 0.2% month-over-month, while analysts expected that they would decrease by 0.1%. Traders also had a chance to take a look at Initial Jobless Claims report, which showed that 202,000 Americans filed for unemployment benefits in a week. Real Estate stocks were among the best performers in SP500 today as Treasury yields tested multi-month lows. Energy stocks have also enjoyed strong support amid a strong rally in the oil markets.

From the technical point of view, SP500 faced resistance in the 4730 – 4750 range. A move below the 4700 level will provide SP500 with a chance to gain additional downside momentum.

NASDAQ

NASDAQ retreats as traders take profits in tech stocks. Adobe is the biggest loser in the NASDAQ index today. The stock is down by 7% as traders react to the company’s earnings report.

Currently, NASDAQ is trying to settle below the support in the 16,400 – 16,500 range. A move below 16,400 will push NASDAQ towards the 50 MA at 16,125.

Dow Jones

Dow Jones pulls back after testing all-time high levels. Profit-taking is the key driver for the move.

RSI remains in the overbought territory, so there is enough room to gain additional downside momentum in case the right catalysts emerge.

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