NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Tests Historic Highs

SP500

SP500 moved away from session highs as traders reacted to the ISM Services PMI report and remained focused on the U.S. government shutdown. ISM Services PMI decreased from 52.0 in August to 50.0 in September, compared to analyst forecast of 51.7. Numbers above 50 show expansion. The slowdown of the services sector, which is extremely important for the U.S. economy, may force the Fed to be less hawkish. Nevertheless, Treasury yields moved higher, putting some pressure on stocks. Utilities and healthcare stocks were among the biggest gainers in the SP500 index today as demand for safe-haven assets increased. Consumer cyclical stocks found themselves under pressure.

The nearest support level for SP500 is located in the 6700 – 6710 range. In case SP500 declines below the 6700 level, it will head towards the 50 MA at 6678. A move below the 50 MA will push SP500 towards the next support at 6610 – 6620.

NASDAQ

NASDAQ is losing ground as traders take some profits off the table ahead of the weekend. Palantir Technologies, which is down by 6.5%, is the worst performer in the NASDAQ index today. The stock is losing ground as U.S. Army warned of security problems in the software developed by Palantir.

If NASDAQ settles below the 24,750 level, it will head towards the 50 MA at 24,631. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones moved above the resistance level at 46,600 – 46,700 and tested the 47,000 level amid rising demand for healthcare and financial stocks.

RSI has recently climbed into oversold territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. A move above the 47,000 level will push Dow Jones towards the 47,500 level.

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