SP500 Tests Resistance At 7720 – 7730
SP500 gains ground as traders focus on the situation in the oil markets and wait for key earnings reports, which will be released this week.
Oil prices pulled back from session highs amid reports indicating that U.S. and Iran continued negotiations. However, the pullback was not strong as traders remained focused on risks of additional escalation in the Middle East.
Treasury yields were mixed in today’s trading session. The yield of 2-year Treasuries climbed towards the 4.79% level, while the yield of 10-year Treasuries pulled back below 5.12%.
Traders also focused on housing market reports. Housing Starts decreased by -5.2% month-over-month in September, compared to analyst forecast of +1.9%. Building Permits declined by -0.2%, exceeding the analyst consensus of -0.7%.
Pending Home Sales decreased by -7.3% month-over-month in September, while analysts expected that they would fall by -0.5%. On a year-over-year basis, Pending Home Sales declined by -11.3%. The reports indicated that housing market remained under pressure amid high interest rates.
Healthcare stocks were among the biggest gainers in the SP500 index today. Real estate and utilities stocks have also gained solid upside momentum in today’s trading session.
Currently, SP500 is trying to settle above the resistance level at 7720 – 7730. In case this attempt is successful, SP500 will head towards the 50 MA at 7759. A move above the 50 MA will open the way to the test of the resistance level at 7780 – 7790.
On the support side, a move below the 7700 level will push SP500 towards the 7670 level. In case SP500 declines below 7670, it will head towards the support at 7615 – 7625.
NASDAQ Is Mostly Flat Ahead Of Key Earnings Reports
NASDAQ is mostly flat as traders wait for tomorrow’s earnings reports from Meta and Tesla. Meta’s earnings will test sentiment in the AI space. From a big picture point of view, traders are worried that AI companies use too much debt to build infrastructure. In case Meta’s earnings are strong, NASDAQ will have a great chance to gain strong upside momentum.
Currently, NASDAQ is trying to settle above the resistance level at 29,700 – 29,750. In case NASDAQ manages to settle above the 29,750 level, it will head towards the next resistance level, which is located in the 30,100 – 30,150 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, a move below 29,500 will push NASDAQ towards the nearest support at 29,250 – 29,300.
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See all Dow Jones forecastsDow Jones Tests New Highs As Traders Buy Healthcare Stocks
Dow Jones gained ground amid rising demand for healthcare and financial stocks. Currently, Dow Jones is trying to settle above the resistance level at 52,300 – 52,400.
In case this attempt is successful, Dow Jones will head towards the next resistance level, which is located in the 52,800 – 52,900 range.
On the support side, Dow Jones needs to settle below the 52,300 level to gain downside momentum in the near term. In this case, Dow Jones will head towards the 50 MA at 51,869. A move below the 50 MA will push Dow Jones towards the support at 51,600 – 51,700.
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