NASDAQ Index, SP500, Dow Jones Analysis – NASDAQ Pulls Back Amid Profit-Taking

SP500 160623 4H Chart

SP500 is mostly flat as traders wait for new catalysts. Michigan Consumer Sentiment report exceeded analyst expectations but did not provide material support to major indices as traders decided to take some profits off the table after the strong rally. Utilities and Energy stocks are moving higher today, while tech stocks have found themselves under pressure.

RSI declined, which is good for the bulls. The current upside trend stays strong, and it remains to be seen whether profit-taking will lead to a material pullback. At the same time, it should be noted that the nearest support area is located below the 4320 level, and there are no material support levels between 4320 and 4430.

NASDAQ 160623 4H Chart

NASDAQ pulled back after testing new highs as traders took some profits in tech stocks. At this point, traders ignore rising Treasury yields, which are bearish for the yield-sensitive tech stocks. However, the continuation of the current trend in the Treasury markets may ultimately put more pressure on NASDAQ.

In recent days, NASDAQ moved higher without any material pullback. At the same time, RSI moved back into the moderate territory, so NASDAQ is not overbought and may test new highs if the right catalysts emerge.

Dow Jones

Dow Jones 160623 4H Chart

Dow Jones faced resistance above the 34,500 level and pulled back. Today’s trading session was calm, and there were no notable gainers or losers in the Dow Jones index.

From the technical point of view, Dow Jones needs to stay above the key support in the 34,200 – 34,300 area to have a chance to develop upside momentum in the near term.

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