NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Tesla Soars 21.2%

SP500

SP500 managed to gain some ground as traders reacted to PMI reports. Manufacturing PMI increased from 47.3 in September to 47.8 in October, compared to analyst consensus of 47.5.  Numbers below 50 show contraction. Services PMI improved from 55.2 to 55.3, compared to analyst forecast of 55. Today, traders also had a chance to take a look at the New Home Sales report for September. The report indicated that New Home Sales increased by 4.1% month-over-month, while analysts expected that they would decline by 2.2%. Treasury yields moved lower, providing some support to SP500. Consumer cyclical stocks were among the biggest winners today, while basic materials stocks have found themselves under pressure despite the rebound in the gold markets and the strong rally in palladium markets.

SP500 continues its attempts to settle below the nearest support level at 5800 – 5810. In case SP500 settles below the 5800 level, it will gain additional downside momentum and move towards the next support level, which is located in the 5735 – 5750 range.

NASDAQ

NASDAQ gained ground as Tesla rallied 21.2% after the strong earnings report. The company has easily exceeded analyst estimates. Short-covering may have served as an additional bullish catalyst for Tesla stock today.

NASDAQ managed to settle back above the support at 20,000 – 20,100. If NASDAQ moves above the 50 MA at 20,290, it will head towards the resistance at 20,700 – 20,800.

Dow Jones

Dow Jones is losing ground as most stocks in the index are moving lower. IBM, which is down by 6.5%, is the worst performer in the Dow Jones index today. The stock is under pressure as IBM revenue missed analyst forecasts.

From the technical point of view, Dow Jones is moving towards the nearest support at 42,100 – 42,200. RSI is in the moderate territory, so there is enough room to gain additional momentum in case the right catalysts emerge.

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