S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Daily Technical Outlook: Tech Woes Stir Markets, Industrial Average Teeters

Key Insights

• Alphabet’s cloud revenue dip contrasts Microsoft’s AI-driven surge, setting the stage for NASDAQ and S&P 500’s performance.
• Despite Alphabet’s 9% stock decline, Microsoft’s AI-enhanced cloud results push its shares up 4%, spotlighting the tech influence on major indices.
• Tech-heavy NASDAQ feels the pressure post-Alphabet’s miss; S&P 500 navigates its tech exposure while Dow keeps a vigilant eye on Boeing’s trajectory.
• With bearish undertones shadowing the S&P 500 and NASDAQ, Dow Jones teeters on the brink – all eyes on pivotal resistance levels for market direction.

Quick Fundamental Outlook

U.S. stock indices trended downwards after Alphabet’s cloud revenue missed expectations, despite Microsoft surpassing forecasts.  Alphabet’s stock declined by 9%, while Microsoft’s grew by 4% due to AI-boosted cloud results.

Attention pivots to Meta Platforms for insights on its ad business. Meanwhile, Boeing’s shares increased by 1%, even as it cut its 737 Max delivery forecast. The setback in Alphabet’s performance could pressurize the tech-heavy NASDAQ. The S&P 500 might also experience fluctuations given its tech exposure.

The Dow, although more resilient, will monitor major components like Boeing. The combined outcomes from these giants will influence the near-term trajectory of the mentioned indices.

S&P 500

The S&P 500 (SPX) index kicked off the week at 4,247.69, marking a decline of 0.53% from the previous close. On the 4-hour chart, the pivot point for the index is set at 4,278.

Upwards, immediate resistance is situated at 4,341, with further barriers seen at 4,399 and 4,461. On the flip side, immediate support is resting at 4,216, followed by 4,173 and a more profound level at 4,107.

NASDAQ

The NASDAQ Composite Index starts the week at 13,139.87, registering a 0.93% increase in the last 24 hours based on the 4H chart. The market’s pivot point stands firm at 13,188, with the immediate resistance plotted at 13,396. Further barricades for the bulls are set at 13,704 and 13,956. Conversely, the index has support cushions at 12,912, followed by 12,646 and a deeper floor at 12,422.

The RSI, currently at 42, leans toward bearish sentiment as it’s below the midline of 50. This interpretation is further buttressed by the NASDAQ trading below its 50 EMA, which is pegged at 13,368. The presence of a downward channel on the 4-hour chart corroborates the selling inclination.

The current sentiment for NASDAQ is bearish, especially if it lingers below 13,188. However, any break above this level might tilt the scale toward bullishness. Near-term, eyes are on the resistance at 13,704.

Dow Jones

The Dow Jones Industrial Average (DJIA) stands at 33,208.63, marginally up by 0.03% as we approach the close of the day. As per the 4-hour chart, a pivot point at 33,445 delineates the immediate technical landscape.

The Dow faces resistance at 33,726, with subsequent levels at 34,150 and 34,568. Support levels are positioned at 32,893, followed by 32,615 and then 32,300.

The RSI is currently at 47, indicating a near-neutral sentiment but tilting slightly bearish. Meanwhile, the Dow is trading just below its 50 EMA, set at 33,383, suggesting mild bearishness in the short-term.

Chart patterns reveal a descending triangle, typically a bearish sign. However, a triple bottom pattern around 32,890 provides hope for the bulls, suggesting potential for a bounce.

The outlook for Dow remains bearish if it stays below 33,445. Should it surpass this, a change in sentiment might be on the horizon. The near-term focus is on the resistance at 34,150.

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