NASDAQ Index, SP500, Dow Jones Forecasts – SP500 And NASDAQ Rebound After Sell-Off

Key Insights

• SP500 moved towards the 4250 level as traders reacted to ADP report. 
• NASDAQ rebounded above 14,700 as Treasury yields pulled back from recent highs. 
• Dow Jones settled near the 33,000 level as traders waited for additional catalysts.

SP500

SP500 gains some ground as traders react to ADP Employment Change report, which indicated that private businesses added 89,000 jobs in September, compared to analyst consensus of 153,000. Traders also focused on PMI reports. S&P Global Services PMI declined from 50.5 in August to 50.1 in September, while ISM Services PMI decreased from 54.5 to 53.6. Numbers above 50 show expansion. Treasury yields pulled back from recent highs as bond traders took some profits off the table after the strong move. The pullback in Treasury yields provided some support to major indices in today’s trading session. The rebound is broad, but energy stocks have found themselves under strong pressure amid a strong sell-off in the oil markets.

The nearest resistance for SP500 is located in the 4260 – 4280 range. In case SP500 manages to settle above 4280, it will head towards the next resistance level, which is located in the 4335 – 4350 range.

NASDAQ

NASDAQ rebounds amid rising demand for tech stocks. Tesla, which is up by more than 4%, is the best performer in the NASDAQ index today.

In case NASDAQ stays above the support at 14,560 – 14,680, it will head towards the next resistance level at 15,200 – 15,300.

Dow Jones

Dow Jones remains stuck below the 33,000 level despite rising appetite for risk. Chevron, which is down by 3%, is the worst performer in the Dow Jones index today. Chevron is under strong pressure as WTI oil is down by more than 5% amid worries about weak demand for gasoline.

If Dow Jones settles below the 33,000 level, it will gain additional downside momentum and move towards the support at 33,600 – 33,700.

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