NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat On Trade War Concerns

SP500

SP500 pulls back amid worries about trade war between U.S. and China. Today, China’s Commerce Minister Wang Wentao blamed U.S. for rising tensions in trade relations, indicating that China was ready for the second round of the trade war. There are no signs of an end of the U.S. government shutdown, which serves as an additional bearish catalyst for stocks. Today, traders had a chance to take a look at the NAHB Housing Market Index report. The report indicated that NAHB Housing Market Index increased from 32 in September to 37 in October, compared to analyst forecast of 33. The better-than-expected report did not provide support to stocks as traders remained focused on trade war news. The pullback was broad, and most market sectors moved lower in today’s trading session. Basic materials stocks managed to gain some ground as gold markets tested historic highs.

Currently, SP500 is trying to settle below the support at 6610 – 6620. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 6500 – 6510 range.

NASDAQ

NASDAQ is moving lower as traders worry that tensions in U.S. – China relations will hurt profits of tech companies.

If NASDAQ settles below the 24,600 level, it will head towards the nearest support at 24,350 – 24,400. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Dow Jones

Dow Jones is under pressure amid broad pullback in the equity markets. Visa, which is down by 2.8%, is the worst performer in the Dow Jones index today.

A successful test of the support at 45,700 – 45,800 will open the way to the test of the next support level, which is located near recent lows in the 45,100 – 45,200 range.

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