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NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat At The End Of The Third Quarter

By:
Vladimir Zernov
Published: Sep 29, 2023, 18:48 GMT+00:00

Major indices are moving lower as traders remain focused on the hawkish Fed.

NASDAQ Index, SP500, Dow Jones Forecasts

In this article:

Key Insights

  • SP500 declined as traders reduced their risks ahead of the weekend. 
  • NASDAQ pulled back towards the 14,700 level. 
  • Nike’s rally did not provide sufficient support to the Dow Jones index. 

SP500

SP500
SP500 290923 4h Chart

SP500 retreats despite the encouraging PCE Price Index report, which showed that PCE Price Index increased from 3.4% in July to 3.5% in August. Traders feared that PCE Price Index, which is Fed’s preferred measure of inflation, will exceed analyst estimates. The PCE Price Index report provided some support to stocks at the beginning of the trading session. However, stocks have quickly lost momentum and moved towards the recent lows. It’s the last day of the quarter, and traders stay bearish.

The nearest support level for SP500 is located in the 4260 – 4280 range. In case SP500 moves below the 4260 level, it will head towards the support at 4175 – 4200.

NASDAQ

NASDAQ
NASDAQ 290923 4h Chart

NASDAQ has also moved away from session highs as traders used the temporary rebound as an opportunity to reduce their long positions ahead of the weekend.

RSI remains in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge. If NASDAQ moves below the support at 14,560 – 14,680, it will head towards the next support level at 14,150 – 14,250.

Dow Jones

Dow Jones
Dow Jones 290923 4h Chart

Dow Jones declined amid a broad pullback in the equity markets. The strong performance of Nike stock, which is up by 7% after the release of the earnings report, did not provide enough support to Dow Jones.

From the technical point of view, Dow Jones continues its attempts to settle below the support at 33,600. In case Dow Jones stays below this level, it will move towards the next support at 33,000 – 33,100.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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