NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Consumer Sentiment Exceeds Expectations

SP500

SP500 gains ground as traders react to the better-than-expected Michigan Consumer Sentiment report. The report showed that Consumer Sentiment improved from 67.9 in August to 69.0 in September, compared to analyst forecast of 68.0. All market sectors were moving higher in today’s trading session. Basic materials stocks were among the best performers as gold prices tested historic highs. Treasury yields moved lower as bond traders prepared for the Fed Interest Rate Decision, which will be released next week. Falling Treasury yields provided additional support to SP500 and other major indices.

From the technical point of view, SP500 is moving towards the nearest resistance at 5660 – 5680. This resistance level has been tested several times and proved its strength. In case SP500 climbs above the 5680 level, it will gain additional upside momentum and test new highs.

NASDAQ

NASDAQ is trying to settle above the resistance at 19,500 – 19,600 as traders stay bullish ahead of the weekend. Arm Holdings, Micron and Super Micro Computer were among the biggest gainers in the NASDAQ index today amid rising demand for chip stocks. Adobe  was down by 8.8% as the company beat earnings estimates but released disappointing guidance.

If NASDAQ settles above the 19,600 level, it will gain additional upside momentum and move towards the resistance at 20,000 – 20,100.

Dow Jones

Dow Jones gains ground as traders remain bullish ahead of the Fed meeting. Boeing, which is down by 3.3%, is the only notable loser in the Dow Jones index today. The stock found itself under pressure amid union strike which halted 737 production.

A successful test of the resistance at 41,300 – 41,400 will provide Dow Jones with an opportunity to move towards the 42,000 level. RSI remains 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.