NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Some Ground As Traders React To Inflation Data

SP500

SP500 gained some ground as traders reacted to inflation data. Inflation Rate increased from 2.4% in September to 2.6% in October, in line with analyst consensus. The Core Inflation Rate report has also met analyst estimates. Core Inflation Rate remained unchanged at 3.3% in October. Energy and consumer cyclical stocks are among the biggest gainers in the SP500 index today. Basic materials stocks have found themselves under pressure amid pullback in precious metals markets. From a big picture point of view, SP500 may need additional positive catalysts to test new highs in the near term.

In case SP500 declines below the 6000 level, it will head towards the support at 5980 – 5990. A move below the 5980 level will push SP500 towards the 50 MA at 5910.

NASDAQ

NASDAQ continues its attempts to settle above the resistance at 21,100 – 21,200. This resistance level has been tested many times and proved its strength. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

If NASDAQ climbs above 21,200, it will gain additional upside momentum and move towards the 21,500 level. On the support side, a move below 21,000 will push NASDAQ towards the support at 20,700 – 20,800.

Dow Jones

Dow Jones moved higher as traders focused on inflation data. Amazon, which was up by 2%, was the biggest gainer in the Dow Jones index today. The stock tested historic highs as traders prepared for the Black Friday week.

If Dow Jones stays above the support at 43,800 – 43,900, it will head towards the nearest resistance level, which is located in the 44,400 – 44,500 range. On the support side, a move below the 43,800 level will open the way to the test of the support level at 43,200 – 43,300.

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