NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moved Above 20,000 Amid Rising Demand For Tech Stocks

SP500

SP500 gains ground as traders focus on the strong sell-off in the oil markets, which are down by roughly 5%. Not surprisingly, energy stocks were among the biggest losers in the SP500 index today. From a big picture point of view, traders react to the reduction of geopolitical risks in the Middle East. Today, traders had a chance to take a look at RCM/TIPP Economic Optimism Index report, which showed that Economic Optimism Index improved from 46.1 in September. to 46.9 in October. Analysts expected that Economic Optimism Index would grow to 47.2, so the report missed estimates. Treasury yields stabilized after the recent rally, providing additional support to equity markets.

Currently, SP500 is trying to settle above the nearest resistance level, which is located in the 5735 – 5750 range. This resistance level has been tested many times and proved its strength. In case SP500 settles above 5750, it will gain additional upside momentum and move towards the 5800 level.

NASDAQ

NASDAQ is moving higher, supported by strong demand for tech stocks. Intel and NVIDIA, which are up by 4%, are among the biggest gainers in the NASDAQ index today.

NASDAQ tests resistance at 20,000 – 20,100. In case this test is successful, NASDAQ will head towards September highs near the 20,300 level.

Dow Jones

Dow Jones moved back towards the 42,000 level as Intel gained 4%. However, it looks that traders remain cautious ahead of FOMC Minutes, which will be released tomorrow.

From the technical point of view, Dow Jones settled in a range near the 42,000 level as traders waited for strong catalysts. FOMC Minutes and CPI report, which will be released on Thursday, may push Dow Jones out of the current trading range. A move above 42,000 will provide Dow Jones with an opportunity to gain sustainable upside momentum.

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