NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground As Netflix Soars 10.9%

SP500

SP500 gains ground despite disappointing housing market reports. Building Permits declined by 2.9% month-over-month in September, compared to analyst forecast of -0.1%. Housing Starts decreased by 0.5%, compared to analyst consensus of +1.8%. Most market sectors are moving higher as traders remain bullish ahead of the weekend. Basic materials stocks gained strong upside momentum as gold tested historic highs while silver tested multi-year highs. Energy stocks have found themselves under pressure as traders focused on the pullbacks in natural gas and oil markets.

SP500 has quickly rebounded after the recent pullback and is trying to settle above the nearest resistance level at 5870 – 5880. In case this attempt is successful, SP500 will head towards the 5900 level.

NASDAQ

NASDAQ is moving higher as Netflix is up by 10.9% after the strong earnings report. The company beat analyst expectations on both earnings and revenue. In addition, total active subscribers have also exceeded analyst estimates.

If NASDAQ manages to settle above the 20,500 level, it will gain additional upside momentum and move towards the nearest resistance level at 20,700 – 20,800. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones gains ground despite the pullback in American Express stock. American Express is down by 2.9% as traders focus on its quarterly report, which missed analyst estimates on revenue. The company managed to beat analyst estimates on earnings, but it was not sufficient to push the stock higher.

If Dow Jones stays above the 43,200 level, it will head towards the 43,500 level. On the support side, a move below the 43,000 level will push Dow Jones towards the nearest support level, which is located in the 42,600 – 42,700 range.

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