NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Drift Higher
- SP500 is slowly moving higher as traders remain bullish ahead of the weekend.
- NASDAQ remains stuck near the resistance at 15,800 – 15,900.
- Dow Jones is flat as traders wait for catalysts.
SP500 gains some ground, supported by the strong performance of energy stocks. WTI oil enjoyed a strong rally amid reports indicating that OPEC+ may deepen production cuts to provide additional support to oil prices. Today, traders also focused on Building Permits and Housing Starts reports. Bulding Permits increased by 1.1% month-over-month in October, while Housing Starts grew by 1.9%. Both reports exceeded analyst expectations. The strong reports provided support to major indices, but it looks that traders are waiting for stronger catalysts that could push stocks to new highs after the strong rally from October lows.
RSI has recently moved back into the moderate territory, which is a bullish sign. In case SP500 settles above 4525, it will head towards the nearest resistance, which is located in the 4575 – 4600 range.
NASDAQ remains stuck near the resistance at 15,800 – 15,900 as traders wait for catalysts. Ross Stores, which is up by 8% after the strong earnings report, is the only notable gainer in the NASDAQ index today.
NASDAQ needs to settle above the 15,900 level to have a chance to gain sustainable upside momentum. There are no signs of profit-taking after the strong rally from October lows, so the market sentiment remains extremely bullish.
Dow Jones is mostly flat ahead of the weekend. Chevron, which is up by 2% amid a strong rally in the oil markets, is the biggest gainer in the Dow Jones index today. Overall, trading is calm, and market participants are simply waiting for the next week.
In case Dow Jones manages to settle above the 35,000 level, it will gain additional upside momentum and head towards the next resistance at 35,550 – 35,700.
For a look at all of today’s economic events, check out our economic calendar.