NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Moves Higher As Amazon Gains 4.7%

SP500

SP500 gained some ground despite the weaker-than-expected ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI decreased from 49.1 in September to 48.7 in October, compared to analyst forecast of 49.5. Traders focused on the major deal, which was announced by Amazon. The company has signed a $38 billion deal with Open AI, which will pay Amazon Web Services for access to NVIDIA chips. Most market sectors moved lower in today’s trading session, which indicates that the market is cautious. The positive news from tech companies provide support to SP500, but other sectors are lagging.

SP500 settled in a range between the support at 6830 – 6840 and the resistance at 6890 – 6900. In case SP500 settles below the 6830 level, it will head towards the next support, which is located in the 6765 – 6775 range.

NASDAQ

NASDAQ is moving higher as demand for chip stocks increased after Amazon announced its deal with OpenAI. Micron and NVIDIA are among the biggest gainers in the NASDAQ index today.

From the technical point of view, NASDAQ continues its attempts to settle above the resistance at 25,950 – 26,000. In case NASDAQ settles above the 26,000 level, it will gain additional upside momentum and move towards the 26,500 level.

Dow Jones

Dow Jones pulled back despite the strong performance of Amazon and NVIDIA stocks. Falling demand for healthcare and industrials stocks put material pressure on the Dow Jones index today.

In case Dow Jones manages to settle below the 50 MA at 47,357, it will head towards the next support level, which is located in the 46,900 – 47,000 range. A move below the 46,900 level will open the way to the test of the support at 46,100 – 46,200. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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