NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As Alphabet Gains 3.2%

SP500

SP500 gains ground as traders bet that Fed will cut the federal funds rate at the meeting on Wednesday. Trade negotiations with China provide additional support to stocks. U.S. officials indicated that U.S. – China tariff truce will be extended after November deadline. Today, traders also focused on NY Empire State Manufacturing Index report. The report showed that NY Empire State Manufacturing Index decrased from +11.90 in August to -8.70 in September, compared to analyst forecast of +5. Most market sectors gained ground in today’s trading session. Healthcare and consumer defensive sectors found themselves under pressure as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the resistance at 6610 – 6620. In case this attempt is successful, SP500 will head towards the 6650 level. Traders should note that RSI is in the overbought territory, so the risks of a pullback are increasing.

NASDAQ

NASDAQ moved higher as Alphabet gained 3.2%, surpassing the $3 trillion market cap.  Tesla , which gained 2.6%, was also among the biggest gainers in the NASDAQ index today.

If NASDAQ manages to settle above the resistance at 24,200 – 24,250, it will head towards the 24,500 level.

Dow Jones

Dow Jones is mostly flat due to pullbacks in healthcare and consumer defensive sectors. Merck, which is down by 1.9%, is the biggest loser in the Dow Jones index today.

From the technical point of view, Dow Jones failed to settle above the resistance level at 46,100 – 46,200 and pulled back towards the support, which is located in the 45,700 – 45,800 range. A move below the 45,800 level will open the way to the test of the next support at 45,000 – 45,100. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in the near term.

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