NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests New Highs

SP500

SP500 pulled back from session highs as traders took some profits off the table after the release of the better-than-expected Retail Sales report. The report indicated that Retail Sales increased by 0.4% month-over-month in September, compared to analyst consensus of +0.3%. Today, traders also had a chance to take a look at the Industrial Production report, which showed that Industrial Production declined by 0.3% month-over-month in September. Philadelphia Fed Manufacturing Index increased from 1.7 in September to 10.3 in October, compared to analyst forecast of 3. NAHB Housing Market Index improved from 41 in September to 43 in October. From a big picture point of view, traders used the strong Retail Sales data as an opportunity to take profits near historic highs.

SP500 did not manage to settle above the resistance at 5870 – 5880 and pulled back towards the 5850 level. In case SP500 moves below 5850, it will head towards the nearest support level, which is located in the 5800 – 5810 range.

NASDAQ

NASDAQ has also moved away from session highs amid profit-taking. It should be noted that demand for AI-related stocks stays strong. Micron, NVIDIA, and Arm Holdings were among the biggest gainers in the NASDAQ index today.

If NASDAQ declines below the 50 MA at 20,208, it will head towards the nearest support level at 20,000 – 20,100.

Dow Jones

Dow Jones tested new highs, supported by the strong rally in Travelers Companies stock. The shares gained 8.9% as traders reacted to the better-than-expected earnings report.

From the technical point of view, Dow Jones needs to settle above the resistance at 43,100 – 43,200 to have a chance to gain additional upside momentum in the near term. On the support side, a move below the 43,000 level will push Dow Jones towards the nearest support, which is located in the 42,600 – 42,700 range.

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