NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Tesla Gains 4.5%

SP500

SP500 remains stuck below the key resistance at 5735 – 5750 as traders react to the flash readings of PMI reports for September. Manufacturing PMI pulled back from 47.9 in August to 47.0 in September, while analysts expected that it would grow to 48.5. The manufacturing sector remains under pressure, and it remains to be seen whether the recent rate cut from the Fed will provide sufficient support in the near term. Meanwhile, the services sector stays strong. Services PMI declined from 55.7 to 55.4, compared to analyst consensus of 55.3. The better-than-expected Services PMI boosted Composite PMI, which dropped to 54.4 in September. Numbers above 50 show expansion, so the U.S. economy continues to expand at a decent pace.

In case SP500 climbs above the 5750 level, it will gain additional upside momentum and move towards the 5800 level. RSI has recently moved into the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

NASDAQ

NASDAQ gained some ground as traders reacted to the better-than-expected Composite PMI report. However, the move was not strong, and it looks that traders are waiting for additional catalysts. Tesla, which was up by 4.5%, was among the biggest gainers in the NASDAQ index today. The stock moved higher after a bullish note from Barclays Capital.

In case NASDAQ manages to settle above the nearest resistance at 20,000 – 20,100, it will move towards the next resistance level, which is located in the 20,700 – 20,800 range.

Dow Jones

Dow Jones continues its attempts to settle above the resistance, which is located in the 42,100 – 42,200 range. Intel, which is up by 3.2%, is among the biggest gainers in the Dow Jones index. The stock is moving higher amid M&A rumors.

A move above the 42,200 level will open the way to the test of the 42,500 level. RSI is in the moderate territory, which is bullish for Dow Jones.

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