NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Move Higher At The Start Of The Week
- Pre-Fed caution prevails; major moves on hold before Wednesday’s decision.
- NASDAQ gains some ground; Moderna is under pressure as demand for Covid vaccine is expected to be weak.
- Dow Jones moves higher as market sentiment is somewhat bullish.
SP500 gains ground as traders react to NAHB Housing Market Index report, which indicated that NAHB Housing Market Index declined from 50 in August to 45 in September. High interest rates put material pressure on the housing market, so Fed may be forced to be less hawkish. While the weak housing data may have provided material support to major indices, traders are not ready for big moves ahead of the Fed Interest Rate Decision, which will be released on Wednesday. Analysts expect that Fed will leave the federal funds rate unchanged, so traders will focus on Powell’s comments. Trading may stay choppy ahead of Wednesday as there are no important economic reports scheduled to be released tomorrow, so market participants will stay focused on general market sentiment.
SP500 received support near the 4430 – 4450 level and is trying to gain upside momentum. A move above the 200 MA at 4465 will push SP500 towards the 4500 level.
NASDAQ gains some ground at the start of the week. Moderna, which is down by 8%, is the only notable mover in the NASDAQ index today. The stock is under pressure as traders bet that Covid vaccine demand will be weak.
NASDAQ has recently made an attempt to settle below the support in the 15,200 – 15,300 range. If NASDAQ settles below the 15,200 level, it will head towards the next support, which is located in the 14,560 – 14,680 range.
Dow Jones is also moving higher in today’s trading session. Trading is calm as market participants stay cautious ahead of the Fed decision.
RSI is in the moderate territory, so there is plenty of room to gain additional momentum in the upcoming trading sessions. Technical factors will soon take a back seat as everyone will focus on Powell’s comments.
For a look at all of today’s economic events, check out our economic calendar.