NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back Amid Valuation Concerns

SP500

SP500 gains ground as traders prepare for the end of the U.S. government shutdown, which was the longest in history. However, investors will not be able to digest important economic data in the near term. White House Press Secretary Karoline Leavitt said that CPI and jobs reports for October would not be released. Basic materials stocks are among the biggest gainers today as traders focus on the strong rally in precious metals markets. Energy stocks have found themselves under pressure as traders focused on the sell-off in the oil markets, which was triggered by disappointing OPEC report.

SP500 made an attempt to settle above the 6880 level but lost momentum and pulled back. The nearest support level for SP500 is located in the 6840 – 6850 range. A move below the 6840 level will push SP500 towards the 50 MA at 6809.

NASDAQ

NASDAQ pulled back despite the strong rally in Advanced Micro Devices stock. AMD gained 7.4% as the company presented ambitious revenue growth targets. Other big names like Meta, Tesla, and Alphabet have found themselves under pressure in today’s trading session.

In case NASDAQ stays below the 50 MA at 25,576, it will head towards the support level, which is located in the 25,150 – 25,200 range. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.

Dow Jones

Dow Jones tested historic highs amid rising demand for financial and industrials stocks.

If Dow Jones stays above the resistance at 48,000 – 48,100, it will head towards the psychologically important 50,000 level. It should be noted that RSI has recently moved into overbought territory, so the risks of a pullback are increasing.

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