NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back After NASDAQ Tests Record Highs

SP500

SP500 continues its attempts to settle above the resistance at 6090 – 6100 as traders focus on recent comments from Fed Chair Powell and react to the New Home Sales report. The report indicated that New Home Sales decreased by -13.7% month-over-month in May, compared to analyst forecast of -5.8%. It looks that profit-taking has served as a material catalyst in today’s trading session. Traders decided to take some money off the table near historic highs, and the market needs additional positive catalysts to test record highs. Tech stocks were among the leaders in the SP500 index today, while most market sectors moved lower.

The technical picture remains unchanged as SP500 needs to settle above the resistance at 6090 – 6100 to gain additional upside momentum in the near term. On the support side, a move below the 6070 level will open the way to the test of the nearest support level, which is located in the 6000 – 6010 range.

NASDAQ

NASDAQ made an attempt to settle above the resistance at 22,250 – 22,300 but lost momentum and pulled back. It should be noted that demand for chip stocks remained strong. NVIDIA and Advanced Micro Devices were the biggest gainers in the NASDAQ index today.

In case NASDAQ settles back below the 22,150 level, it will head towards the support level at 21,950 – 22,000.

Dow Jones

Dow Jones pulled back from recent highs as traders focused on profit-taking. McDonald’s, which was down by 2.2%, was the biggest loser in the Dow Jones index today.

The nearest support level for Dow Jones is located in the 42,700 – 42,800 range. If Dow Jones manages to settle below the 42,700 level, it will gain additional downside momentum and move towards the next support at 42,000 – 42,100.

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