NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Attempt To Rebound As Meta Moves Away From Session Lows

Key Insights

• SP500 found support near 4130 and moved back above the 4150 level. 
• NASDAQ has also managed to move away from session lows, although the market sentiment in the tech segment remained bearish. 
• Dow Jones settled near the 33,000 level, supported by the strong performance of IBM stock.

SP500

SP500 rebounded from session lows as traders used the strong pullback as an opportunity to increase their long positions. GDP Growth Rate was 4.9% in the thrid quarter, compared to analyst consensus of 4.3%. The better-than-expected report raised worries about hawkish Fed. Pending Home Sales have also exceeded analyst expectations. Fed policy outlook remains the key driver for markets, so decent economic data often serves as a bearish catalyst for stocks. Real Estate and Utilities stocks moved higher due to the pullback in Treasury yields, providing additional support to SP500.

The nearest resistance for SP500 is located in the 4200 – 4215 range. In case SP500 manages to settle back above this level, it will head towards the resistance at 4260 – 4280.

NASDAQ

NASDAQ found itself under pressure due to the sell-off In Meta stock. The company’s earnings exceeded analyst expectations, but traders worried about ad sales and spending outlook. From a big picture point of view, it looks that the market was too optimistic ahead of the earnings reports from big tech companies.

In case NASDAQ settles below the support at 14,200 – 14,300, it will head towards the next support level, which is located in the 13,800 – 13,900 range.

Dow Jones

Dow Jones managed to stay near the 33,000 level, supported by the strong rally in IBM shares. The stock is up by 5% after the strong earnings report.

Dow Jones needs to climb back above the 33,100 level to have a chance to gain sustainable upside momentum. In case this attempt is successful, Dow Jones will move towards the resistance at 33,600 – 33,700.

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