Nasdaq Looking for Direction
The Nasdaq Composite Index underperformed today giving up 0.5% to 7,796.66 while the Dow Jones Industrial Average (DJIA) fell 17.16 points, or 0.07%, to 26,089.61, and the S&P 500 lost 4.65 points, or 0.16%, to 2,886.99. Geopolitical tensions has increased the last hours after U.S. Secretary of State Mike Pompeo, accused Iran of orchestrating a series of attacks on tankers in the Gulf of Iran. Data released earlier today showed that retail sales rose 0.5% in May and April’s data was revised higher. Industrial Production expanded 0.4% MoM in May and Manufacturing Production gained 0.2% from a month earlier, both figures beat economist’s estimates. The only disappointment came from the University of Michigan’s Consumer Confidence Index which fell to 97.9 in June’s preliminary reading from 100 in May and came in slightly worse than the consensus expectation of 98.
The index close below the 50 day moving average and the next support level stands at 7,319 at the 100 day moving average. On the upside immediate resistance is at the weekly high around 7,580 while more offers will emerge at 7,850 the recent high. The technical picture is not very clear and a wait and see stance until the upcoming FOMC meeting is the best trading idea.