SP500 Moves Away From Historic Highs
SP500 pulled back as traders focused on the rally in the oil markets. WTI oil climbed above the $93.50 level as Houthis attacked Saudi airports over the weekend. Houthis’ attacks also continued on Monday.
Oil traders believe that Saudi Arabia would be forced to increase its attacks on the Houthis to defeat the militant group. However, the country’s previous attempts to put pressure on Iran-backed Houthis yielded no results.
In turn, Houthis may attack Saudi Arabia’s oil infrastructure. Supply risks are rising, so it’s not surprising to see that oil is moving higher. High energy prices will likely force the Fed to be more hawkish, which is bearish for SP500.
U.S. government bond markets are closed in observation of Columbus Day, but yields may rise tomorrow as traders would focus on rising oil prices.
Energy stocks were among the biggest gainers today, supported by high oil prices. Consumer defensive stocks also moved higher as demand for defensive sectors increased. Tech stocks found themselves under strong pressure.
SP500 made an attempt to settle above the resistance at 7815 – 7825 but lost momentum and pulled back towards the 7800 level. In case SP500 settles below 7800, it will head towards the 50 MA at 7769. A move below the 50 MA will open the way to the test of the next support level at 7720 – 7730.
NASDAQ Retreats As Sandisk Dives 6.5%
NASDAQ moved lower amid pullback in the tech sector. Sandisk, which was down by -6.5%, was among the biggest losers in the NASDAQ index today. Micron has also moved lower. The memory sector found itself under pressure as China’s ChangXin Memory Technologies announced progress in new memory-cell design. The company plans to introduce the new product by the end of 2026.
Currently, NASDAQ is trying to settle below the support level at 30,750 – 30,800. If NASDAQ manages to settle below the 30,750 level, it will head towards the next support, which is located in the 30,200 – 30,250 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.
On the upside, a move above the 50 MA at 30,921 will open the way to the test of the resistance level at 31,350 – 31,400.
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See all Dow Jones forecastsDow Jones Attempts To Climb Above 51,800
Dow Jones gained ground amid rising demand for consumer and financial stocks. Interestingly, most stocks in the Dow Jones index moved higher in today’s trading session. Coca-Cola, which was up by +1.7%, was the biggest gainer in the Dow Jones index today.
Dow Jones moved above the resistance at 51,600 – 51,700 and is trying to settle above the 51,800 level. In case this attempt is successful, Dow Jones will move towards the next resistance, which is located in the 52,300 – 52,400 range.
On the support side, a move below the 51,600 level will open the way to the test of the 50 MA at 51,274. If Dow Jones declines below the 50 MA, it will head towards the support at 51,100 – 51,200.
For a look at all of today’s economic events, check out our economic calendar.
