NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Demand For Chip Stocks Stays Strong

SP500

SP500 gains ground as traders react to the Dallas Fed Manufacturing Index report and focus on the strong sell-off in the oil markets. Dallas Fed Manufacturing Index improved from -9.0 in September to -3.0 in October, compared to analyst consensus of -1. WTI oil is down by 5.6% as traders react to Israel’s strike against Iran, which did not target Iran’s oil infrastructure. Not surprisingly, oil stocks are among the biggest losers in the SP500 index today. Other sectors are moving higher as traders stay bullish ahead of U.S. elections.

In case SP500 manages to settle above the 50 MA at 5846, it will head towards the nearest resistance at 5870 – 5880. This resistance level has been tested several times and proved its strength. On the support side, a move below the 5830 level will open the way to the test of the support at 5800 – 5810.

NASDAQ

NASDAQ gained some ground but moved away from session highs. Demand for chip stocks remained strong. Arm Holdings, Advanced Micro Devices and Intel were among the biggest gainers in the NASDAQ index today.

If NASDAQ settles back below the 50 MA at 20,311, it will move towards the nearest support level, which is located in the 20,000 – 20,100 range. On the upside, a move above the 20,600 level will lead to the test of the resistance at 20,700 – 20,800.

Dow Jones

Dow Jones continues to rebound after the recent pullback. 3M, which is up by 4.6%, is the best performer in the Dow Jones index today. The stock gained strong upside momentum as traders used the recent pullback as an opportunity to increase their long positions.

From the technical point of view, Dow Jones received support in the 42,100 – 42,200 range and is moving towards the nearest resistance level at 42,600 – 42,700.

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