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NASDAQ, S&P 500, Dow Jones Analysis – Stocks Remain Under Pressure Amid Slowdown Concerns

By:
Vladimir Zernov
Published: Jan 19, 2023, 19:23 UTC

Some traders are searching for signs of a bottom, but it remains to be seen whether stocks will be able to gain sustainable upside momentum this week.

NASDAQ

In this article:

Key Insights

  • Stocks managed to move away from session lows but failed to develop material upside momentum. 
  • Traders remain worried about the slowdown of the U.S. economy. 
  • Dow Jones settled below the 50 EMA, which is a bearish sign. 

S&P 500 (SPX500)

S&P 500
S&P 500 190123 Daily Chart

S&P 500 rebounded from session lows as some traders used the pullback as an opportunity to buy more stocks.

Today, traders focused on the housing and job market data. The labor market stays tight, but markets remain convinced that the Fed will not be able to push rates above the 5.00% level in 2023.

Energy stocks have outperformed the broader market today as oil markets moved closer to recent highs. Stocks from the Industrials and Technology segments were among the biggest laggards in today’s trading session.

From a big picture point of view, traders are worried about the slowdown of the economy. The recent rally was driven by bets on a less hawkish Fed, but traders’ focus has already shifted towards the situation in the real economy.

NASDAQ (NAS100)

NASDAQ
NASDAQ 190123 Daily Chart

NASDAQ received some support near the 20 EMA but remained under pressure as traders continued to sell tech stocks.

Treasury yields moved higher today, which was bearish for the tech-heavy NASDAQ. In case NASDAQ declines below the 20 EMA at 11,285, it will gain additional downside momentum and move towards the next significant support level at 11,100.

Dow Jones (US30)

Dow Jones
Dow Jones 190123 Daily Chart

Dow Jones was the best performer among major indices today as only a handful stocks have found themselves under strong pressure.

Home Depot, 3M, and Caterpillar were the biggest losers among Dow Jones components today. It should be noted that Dow Jones managed to settle below the 50 EMA at 33,280, which is a bearish sign.

Dow Jones needs to get back above the 50 EMA to have a chance to gain sustainable upside momentum in the upcoming trading sessions.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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