NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat As Traders Take Profits Ahead Of JOLTs Report

SP500

SP500 pulls back as traders take some profits off the table ahead of the Fed decision, which will be released on Wednesday. The pullback is broad, and most market sectors are moving lower in today’s trading session. Consumer cyclical and consumer defensive stocks are among the biggest losers in the SP500 index today. Meanwhile, tech stocks managed to gain some ground. Treasury yields are moving higher, although the FedWatch Tool indicates that Fed will likely cut the federal funds rate by 25 bps at the upcoming meeting. It should be noted that traders will have a chance to take a look at the JOLTs Job Openings report tomorrow, so some market players prefer to reduce the size of their long positions ahead of this important event.

SP500 faced strong resistance near the 6880 level and pulled back towards the 50 MA at 6839. In case SP500 declines below the 50 MA, it will head towards the support level, which is located in the 6750 – 6760 range.

NASDAQ

NASDAQ is moving lower despite rising demand for tech stocks. Tesla, which is down by 4.1%, is among the worst performers in the NASDAQ index today. The company’s shares pulled back after Morgan Stanley downgraded Tesla with a target price of $425. Netflix  is down by 3.8% as Paramount launched a hostile bid for Warner Bros.

A move below the 50 MA at 25,501 will push NASDAQ towards the support level, which is located in the 25,200 – 25,250 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. Falling demand for consumer cyclical and consumer defensive stocks put material pressure on the Dow Jones index today.

In case Dow Jones declines below the 50 MA at 47,608, it will head towards the support level, which is located in the 47,100 – 47,200 range.

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