NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Trump Will Meet Xi In South Korea

SP500

SP500 gains ground as White House announced that U.S. President Donald Trump would meet Chinese President Xi Jinping at the APEC summit next Thursday. The meeting will take place in South Korea. Traders hope that presidents will be able to negotiate a trade deal or an extension of the trade truce, which is set to expire on November 10. Today, traders also focused on the Existing Home Sales report. The report indicated that Existing Home Sales increased by +1.5% month-over-month in September, compared to analyst forecast of -2.0%. Tomorrow, traders will focus on CPI report, which will be released despite U.S. government shutdown. Analysts expect that Inflation Rate increased from 2.9% in August to 3.1% in September. The report will likely have a material impact on market dynamics.

Currently, SP500 is trying to settle above the 6750 level. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 6765 – 6775 range. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

NASDAQ

NASDAQ gained ground as traders focused on potential improvements in U.S. – China relations. Honeywell, which was up by 7.4%, was the biggest gainer in the NASDAQ index today. The stock rallied as traders reacted to the better-than-expected earnings report.

The nearest resistance level for NASDAQ is located in the 25,150 – 25,200 range. A move above the 25,200 level will push NASDAQ towards the 25,500 level.

Dow Jones

Dow Jones has also gained some ground in today’s trading session. However, the pullbacks in Verizon, IBM, and Coca-Cola stocks limited Dow Jones’ gains.

From the technical point of view, Dow Jones needs to settle above the resistance at 46,900 – 47,000 to gain additional upside momentum in the near term.

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