NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tested Historic Highs

SP500

SP500 pulls back as traders react to the PCE Price Index report, which showed that PCE Price Index increased by 0.1% month-over-month in August. Core PCE Price Index grew by 0.1%, compared to analyst consensus of +0.2%. Personal Spending increased by 0.2%, compared to analyst forecast of +0.3%. Personal Income grew by 0.2%, while analysts expected that it would increase by 0.4%. The weaker-than-expected Personal Spending and Personal Income reports put some pressure on SP500. Today, traders also had a chance to take a look at the Michigan Consumer Sentiment report. The report showed that Consumer Sentiment improved from 67.9 in August to 70.1 in September, exceeding the analyst consensus of 69.3. The strong Consumer Sentiment report did not provide material support to stocks as traders have mostly focused on profit-taking.

If SP500 pulls back below the 50 MA at 5721, it will move towards the nearest support level, which is located in the 5660 – 5680 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ moved lower amid profit-taking in tech stocks. NVIDIA, Advanced Micro Devices, and Micron were among the biggest losers in the NASDAQ index today.

At this point, NASDAQ did not manage to settle above the resistance at 20,000 – 20,100. If NASDAQ settles below the 20,000 level, it will head towards the 50 MA at 19,857. A move below the 50 MA will push NASDAQ towards the next support level at 19,500 – 19,600.

Dow Jones

Dow Jones managed to climb above the resistance at 42,100 – 42,200 and tested historic highs at 42,630. However, Dow Jones lost momentum and pulled back as traders decided to take some money off the table ahead of the weekend.

From the technical point of view, Dow Jones needs to stay above the 42,200 level to gain additional upside momentum in the near term.

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