NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound From Session Lows

Key Insights

• SP500 managed to move away from session lows and settled near the 4365 level. 
• NASDAQ rebounded above 15,000 as traders used the pullback as an opportunity to increase their long positions in tech stocks. 
• Dow Jones is swinging between gains and losses amid uncertainty. 

SP500

SP500 is losing ground despite the encouraging Retail Sales report, which showed that Retail Sales increased by 0.7% month-over-month in September. Analysts expected that Retail Sales would grow by 0.3%, so the report exceeded expectations. Today, traders also focused on the NAHB Housing Market Index, which fell to multi-month lows. High mortgage rates put pressure on the housing market activity.

The nearest support level for SP500 is located in the 4335 – 4350 range. If SP500 declines below the 4335 level, it will head towards the next support at 4260 – 4280. RSI is in the moderate territory, so there is plenty of room to gain momentum.

NASDAQ

NASDAQ managed to rebound from session lows but remains in the negative territory. New export rules that limit China’s access to top chips put pressure on tech stocks at the start of the trading session. However, it looks that investors believe that AI-related demand is so high that new rules will not have a significant impact on chip producers.

In case NASDAQ climbs above the resistance at 15,200 – 15,300, it will head towards the next resistance level, which is located in the 15,800 – 15,900 range.

Dow Jones

Dow Jones is mostly flat today as traders evaluate the recent developments, including geopolitical tensions and rising Treasury yields.

From the technical point of view, Dow Jones failed to settle above the 34,000 level. If Dow Jones stays below this level, it will move towards the nearest support at 33,600 – 33,700.

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