ObservingMarkets As ISM Services PMI report printed a disappointing number, it proved as a catalyst for the pull back, which also coincided with profit taking at these high levels.
As traders reacted to the disappointing ISM Services PMI report, the S&P 500 index maintained its attempts to settle above the resistance level of 4285. Profit-taking was also key driver for the the S&P 500 today, as traders were eager to take some profits around yearly highs.
Technically, the SP500 may require a pullback to continue its present trend. However, it should be noted that the RSI remains in the moderate range, indicating that there is still possibility for additional upside momentum if the stability returns to markets.
The NASDAQ reached fresh highs as demand for technology stocks remained robust, but traders could not pass up the opportunity to profit at attractive levels. Apple came back from highs during its presentation, as it frequently does, and this had a negative influence on the NASDAQ index.
If the NASDAQ manages to break through the 14,600 level, it will move on to the next resistance level at 14,800. A successful test of this level will propel the NASDAQ towards the 15,000 level of resistance.
Dow Jones retreated after an unsuccessful attempt to break through the 33,800 mark. Today’s decline was headed by Intel, which was down more than 4% on profit-taking following the recent rally.
Dow Jones will go towards the next support level at 33,500 if the support at 33,650 is successfully tested. If the Dow Jones falls below this level, it will head for support at 33,300.
