S&P 500 And Nasdaq 100: Major Indices Gain Ground As Financial Stocks Rally

SP500 Tests Historic Highs As Traders Focus On Banks’ Earnings Reports

Stocks rallied as traders reacted the weaker-than-expected Michigan Consumer Sentiment report, which showed that Consumer Sentiment declined from 70.1 in September to 68.9 in October.

Traders bet that Fed will be less hawkish due to potential slowdown of consumer activity. It should be noted that the change in Consumer Sentiment is within the margin of error, so it’s too early to say that consumer mood is shifting.

Today, traders also focus on the start of the earnings season. JPMorgan Chase, Wells Fargo, and Blackrock have presented their results today. These stocks have gained strong upside momentum as earnings reports beat analyst expectations.

JPMorgan Chase is up by 4.6%, Wells Fargo gained 5.6%, while Blackrock moved higher by 3.4%. The strong rally in financial stocks provided material support to SP500.

Nasdaq 100 has also moved higher despite the strong sell-off in Tesla stock. Tesla is down by 7.5% as traders react to the presentation of Tesla’s Cybercab Robotaxi. Put simply, the market is not impressed.

SP500 Technical Analysis

SP500 managed to settle above the resistance level at 5800 – 5810 and is heading towards the 5850 level. There are no significant resistance levels above 5810 as SP500 is testing historic highs. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in the near term. In case SP500 climbs above 5850, it will head towards the 5900 level.

Nasdaq 100 Technical Analysis

Currently, Nasdaq 100 is trying to settle above the 20,300 level. This level has already been tested several times, and Nasdaq 100 did not manage to gain sufficient upside momentum. If Nasdaq 100 moves above the 20,300 level, it will head towards the next resistance level, which is located in the 20,700 – 20,800 range.

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