NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rebound As ADP Jobs Report Beats Estimates

SP500

SP500 gains ground as traders react to the better-than-expected ADP Employment Change report for October. The report indicated that private businesses added 42,000 jobs, compared to analyst forecast of 25,000. ISM Services PMI report provided additional support to stocks. The report showed that ISM Services PMI improved from 50.0 in September to 52.4 in October, compared to analyst consensus of 50.8. Numbers above 50 show expansion. The rally was broad, and all market sectors moved higher in today’s trading session. Basic materials stocks were among the leaders today as traders focused on the rebound in precious metals markets.

Currently, SP500 is trying to settle above the resistance at 6830 – 6840. In case this attempt is successful, SP500 will head towards the next resistance level, which is located in the 6920 – 6930 range.

NASDAQ

NASDAQ gained ground as traders used the pullback as an opportunity to increase their long positions at attractive levels. Micron, which was up by 8.7%, was among the biggest gainers in the NASDAQ index today.

NASDAQ climbed above the previous resistance at 25,550 – 25,600 and is heading towards the 50 MA at 25,861. A move above the 50 MA will push NASDAQ towards the resistance at 25,950 – 26,000.

Dow Jones

Dow Jones moved higher, supported by the strong rally in AMGEN stock. AMGEN gained 8.5% as traders focused on the better-than-expected earnings report. Caterpillar, which gained 3.9%, was also among the biggest gainers in the Dow Jones index today.

From the technical point of view, Dow Jones settled above the support at 46,900 – 47,000 and is moving towards the resisistance level at 47,500 – 47,600. A successful test of the resistance at 47,500 – 47,600 will open the way to the test of the next resistance at 48,000 – 48,100. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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