NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Attempts To Rebound Despite Rising Oil Prices

SP500 Retreats As Oil Prices Test New Highs

SP500 is losing ground despite solid PMI data as traders focus on the strong rally in the oil markets.

Brent oil tested the $117.00 level as traders bet that U.S. would attack Iran this weekend. U.S. Ambassador to Turkey Tom Barrack said that strikes against Iran were possible. President Trump neither refuted nor confirmed Barrack’s comment.

Treasury yields moved higher as traders focused on rising oil prices. The yield of 2-year Treasuries climbed above the 4.68% level, while the yield of 10-year Treasuries settled near the psychologically important 5.00% level. Traders do not expect that Fed will raise rates at the meeting next week but prepare for a rate hike in December.

Manufacturing PMI improved from 55.9 in September to 56.0 in October, compared to analyst forecast of 55.5. Services PMI decreased from 58.8 to 57.9, while analysts expected that it would decline to 58.0. Numbers above 50 show expansion. The reports showed that U.S. economy remained in great shape.

Traders also focused on the final reading of the Michigan Consumer Sentiment report for October. The report showed that Michigan Consumer Sentiment declined from 48.1 to 48.0, compared to analyst consensus of 46.3.

Current Economic Conditions declined from 50.9 in September to 46.7 in October, while Index of Consumer Expectations improved from 46.3 to 48.8. Year-ahead inflation expectations increased from 4.6% to 4.7%, while long-run inflation expectations grew from 3.4% to 3.5%.

Energy stocks were among the biggest gainers in the SP500 index today as traders reacted to the rally in the oil markets. Consumer defensive and consumer cyclical stocks found themselves under strong pressure.

Currently, SP500 is trying to settle below the support at 7615 – 7625. In case this attempt is successful, SP500 will move towards the next support, which is located in the 7515 – 7525 range. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

NASDAQ Attempts To Rebound On Dip-Buying

NASDAQ made an attempt to rebound as some traders were ready to buy the dip in tech stocks. It remains to be seen whether NASDAQ will be able to gain upside momentum in case the U.S. restarts the military operation against Iran and oil prices test new highs.

If NASDAQ manages to settle above the 29,000 level, it will head towards the resistance at 29,250 – 29,300. A successful test of the resistance at 29,250 – 29,300 will push NASDAQ towards the next resistance, which is located in the 29,700 – 29,750 range.

Dow Jones Pulls Back As Consumer Stocks Fall

Dow Jones is moving lower amid falling demand for consumer stocks. Procter & Gamble and Coca-Cola are among the biggest losers in the Dow Jones index today.

Dow Jones moved below the support at 52,300 – 52,400 and is trying to settle below the 50 MA at 52,209. If Dow Jones manages to settle below the 50 MA, it will head towards the next support level, which is located in the 51,700 – 51,800 range.

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