NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As ASML Dives 17%

SP500

SP500 is under pressure as ASML‘s earnings report triggered a strong pullback in tech stocks. The report showed that the company’ order bookings were 2.6 billion euro in the third quarter, compared to analyst consensus of 5.39 billion euro. In addition, ASML lowered the guidance for the next year. Traders are worried that restrictions aimed at limiting China’s access to top technology would hurt profits of tech stocks. Energy stocks have also found themselves under material pressure in today’s trading session. Traders focused on the sell-off in the oil markets, which was triggered by reports indicating that Israel would not target Iran’s oil infrastructure.

SP500 faced resistance at 5870 – 5880 and pulled back. In case SP500 settles below the 5830 level, it will move towards the nearest support level at 5800 – 5810. A successful test of this level will open the way to the test of the next support at 5735 – 5750.

NASDAQ

NASDAQ pulled back amid strong sell-off in the tech sector. ASML’s report put significant pressure on leading tech stocks like Advanced Micro Devices, NVIDIA, and Micron, which have been among the biggest losers in the NASDAQ index today.

The nearest support level for NASDAQ is located in the 20,000 – 20,100 range. A move below the 20,000 level will open the way to the test of the next support level at 19,500 – 19,600.

Dow Jones

Dow Jones is moving lower as Unitedhealth Group  is down by 7.7%. The stock is under pressure as the company revised its annual profit guidance.

In case Dow Jones manages to settle below the support at 42,600 – 42,700, it will head towards the next support, which is located in the 42,100 – 42,200 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

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