S&P 500 (SPX), Dow Jones (DJI), Nasdaq Composite (IXIC) Daily Technical Outlook: Earnings Surprises & Tech Trends Shape Today’s News

Key Insights

• Stock futures indicate a tepid sentiment as October’s volatility ends.
• The S&P 500 and Dow Jones eye their third consecutive monthly loss, reminiscent of March 2020.
• October’s employment figures and the recent surge in the Employment Cost Index might reshape inflation perspectives.
• Amid Q3 earnings, Caterpillar exceeded forecasts, but its Q4 revenue warning led to a share decline.
• S&P 500 (SPX) currently stands at 4166.83, marking a 1.20% uptick

Quick Fundamental Outlook

Stock futures showed tepid sentiment as October, marked by volatility, drew to a close. The S&P 500 rebounded partially, but both it and the Dow Jones are on track for their third straight month of losses, a pattern last observed in March 2020.

The tech-heavy Nasdaq has dropped by over 3% this month. With the market’s muted movements, anticipation builds for the Federal Reserve’s interest rate verdict, with a 98% chance of rates staying the same.

October’s employment data and Tuesday’s 1.1% rise in the Employment Cost Index could influence views on inflation. Noteworthy Q3 earnings included Caterpillar’s surpassing of expectations but a subsequent share drop due to Q4 revenue caution, while Pfizer reported a reduced Q3 loss.

After the market closes, all eyes will be on AMD’s earnings, with analysts largely optimistic despite expected year-on-year declines.

S&P 500

The S&P 500 (SPX) currently stands at 4166.83, marking a 1.20% uptick. With its pivot at $4,102, immediate resistances are set at $4,197, $4,266, and $4,331, while supports lie at $4,051, $4,003, and $3,941.

The RSI, at 36, signals a bearish sentiment, but it isn’t in the oversold territory yet. The MACD suggests a bearish trend, as it remains below the signal line. However, its proximity indicates a potential momentum shift.

The asset’s price, below the 50 EMA value of $4,275, reinforces the short-term bearish perspective. Chart patterns highlight a symmetrical triangle, suggesting consolidation.

Overall, the asset’s trend is bullish above $4,100 and bearish below, with expectations to test the $4,197 resistance soon.

NASDAQ

NASDAQ‘s price stands at 12789.48, reflecting a 1.16% rise within a 4-hour chart timeframe. Key price levels indicate a pivot at $12,865, with resistances at $13,183, $13,401, and $13,698. Immediate support can be found at $12,544, trailed by $12,278 and $11,942.

The RSI, clocking in at 38, leans towards a bearish sentiment, but remains clear of the oversold bracket. MACD trends bearish, currently positioned below its signal line, while the price trails slightly below the 50 EMA benchmark of $13,187, suggesting a short-term bearish inclination.

Chart patterns emphasize a trendline providing support around $12,545, but with the $12,865 pivot potentially capping upside movement. Summarily, NASDAQ’s outlook appears bullish above $12,865 and bearish below, with anticipations gearing towards testing the $13,183 resistance shortly.

Dow Jones

The Dow Jones Industrial Average (DJIA) registered a modest gain of 0.18%, with its price currently at $32,982 in a 4-hour chart timeframe. Pinpointing key levels, the index has a pivot at $32,875, facing resistances at $33,261, $33,654, and $34,024. Support is expected at $32,352, followed closely by $32,096 and $31,808.

The RSI stands at 54, indicating a slightly bullish sentiment. The MACD showcases an upward momentum as it resides above its signal line. Interestingly, the price is just below the 50 EMA, set at $33,035, suggesting a balanced stance between bullish and bearish trends.

Chart patterns reveal a downward channel breakout at $32,850, hinting at a buying inclination. In summary, the DOW’s trend leans bullish above $32,875. In the short term, the index might aim to touch the resistance at $33,261.

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