NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Face Resistance Amid Profit-Taking

SP500

SP500 is flat as traders react to the Initial Jobless Claims report, which indicated that 191,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 220,000, so the report missed analyst estimates. Today, traders also had a chance to take a look at the Factory Orders report for September. The report showed that Factory Orders grew by +0.2% month-over-month, compared to analyst forecast of +0.5%. Industrials and financial stocks were among the biggest gainers today, while consumer defensive and consumer cyclical stocks found themselves under pressure.

SP500 is stuck below the resistance level at 6870 – 6880. In case SP500 manages to settle above the 6880 level, it will gain additional upside momentum and move towards the 6930 level. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

NASDAQ

NASDAQ is also flat as traders continue to take profits after the recent move. From a big picture point of view, traders focus on the upcoming Fed meeting and expect that Fed will cut rates.

The nearest resistance level for NASDAQ is located in the 25,750 – 25,800 level. A successful test of the 25,800 level will open the way to the test of the next resistance at 26,250 – 26,300.

Dow Jones

Dow Jones moved lower as Apple  pulled back by 1.7%. Unitedhealth Group and Amazon were also among the biggest losers in the Dow Jones index today.

Dow Jones made several attempts to settle above the resistance level at 47,900 – 48,000, but these attempts yielded no results. If Dow Jones settles back below the 47,700 level, it will head towards the nearest support at 47,100 – 47,200.

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