NASDAQ, S&P 500, Dow Jones Analysis – Stocks Remain Under Pressure Amid Slowdown Concerns

S&P 500 190123 Daily Chart

S&P 500 rebounded from session lows as some traders used the pullback as an opportunity to buy more stocks.

Today, traders focused on the housing and job market data. The labor market stays tight, but markets remain convinced that the Fed will not be able to push rates above the 5.00% level in 2023.

Energy stocks have outperformed the broader market today as oil markets moved closer to recent highs. Stocks from the Industrials and Technology segments were among the biggest laggards in today’s trading session.

From a big picture point of view, traders are worried about the slowdown of the economy. The recent rally was driven by bets on a less hawkish Fed, but traders’ focus has already shifted towards the situation in the real economy.


NASDAQ 190123 Daily Chart

NASDAQ received some support near the 20 EMA but remained under pressure as traders continued to sell tech stocks.

Treasury yields moved higher today, which was bearish for the tech-heavy NASDAQ. In case NASDAQ declines below the 20 EMA at 11,285, it will gain additional downside momentum and move towards the next significant support level at 11,100.

Dow Jones (US30)

Dow Jones 190123 Daily Chart

Dow Jones was the best performer among major indices today as only a handful stocks have found themselves under strong pressure.

Home Depot, 3M, and Caterpillar were the biggest losers among Dow Jones components today. It should be noted that Dow Jones managed to settle below the 50 EMA at 33,280, which is a bearish sign.

Dow Jones needs to get back above the 50 EMA to have a chance to gain sustainable upside momentum in the upcoming trading sessions.

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