NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back On Powell’s Comments

SP500

SP500 pulled back as traders reacted to Powell’s comments. Fed Chair noted that Fed was not in a rush to cut rates aggressively. He added that risks remained two-sided, and that Fed would continue to make decisions meeting by meeting. Overall, Powell was less dovish than markets expected, so traders decided to take some profits off the table near historic highs. Today, traders also had a chance to take a look at the Chicago PMI report for September. The report showed that Chicago PMI increased from 46.1 in August to 46.6 in September, while analysts expected that it would grow to 46.2. Dallas Fed Manufacturing Index increased from -9.7 in August to -9.0 in September, compared to analyst forecast of -4.5. From a big picture point of view, SP500 needs strong catalysts to gain additional upside momentum and settle above the strong resistance at 5735 – 5750.

In case SP500 settles below the 50 MA at 5732, it will head towards the nearest support level, which is located in the 5660 – 5680 range.

NASDAQ

NASDAQ is losing some ground as traders focus on Powell’s remarks. The trading session is calm, and there are no significant gainers or losers in the NASDAQ index today.

If NASDAQ settles below the 19,900 level, it will move towards the support at 19,500 – 19,600. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is moving lower amid broad pullback in the equity markets. It should be noted that the trading volume is low as traders wait for stronger catalysts.

From the technical point of view, Dow Jones did not manage to settle above the resistance at 42,100 – 42,200. A move below the 41,900 level will open the way to the test of the support at 41,300 – 41,400.

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