NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back From Session Highs Amid Profit-Taking

SP500

SP500 pulled back from session highs as traders took profits ahead of Fed decision, which will be released tomorrow. Today, traders focused on the Retail Sales report for August. The report showed that Retail Sales increased by 0.1% month-over-month, compared to analyst forecast of -0.2%. Retail Sales Ex Autos grew by 0.1%, compared to analyst consensus of +0.2%. Industrial Production increased by 0.8% month-over-month in August, exceeding analyst expectations. NAHB Housing Market Index improved from 39 in August to 41 in September as interest rates pulled back. The encouraging economic data provided support to stocks at the start of the trading session. However, traders decided to reduce risks ahead of Fed decision.

The nearest resistance level for SP500 is located in the 5660 – 5680 range. SP500 must settle above 5680 to gain additional upside momentum. It remains to be seen whether traders are ready to push SP500 towards historic highs ahead of the interest rate decision.

NASDAQ

NASDAQ has also moved away from session highs amid profit-taking. Intel, which continued to rebound from multi-year lows, was among the biggest gainers in the NASDAQ index today. The stock moved higher after the company announced a deal with Amazon Web Services.

In case NASDAQ manages to settle above the resistance at 19,500 – 19,600, it will head towards the next resistance level, which is located in the 20,000 – 20,100 range.

Dow Jones

Dow Jones moved lower as traders took profits near historic highs. From a big picture point of view, traders are not ready for big moves ahead of Fed decision.

The nearest support level for Dow Jones is located in the 41,300 – 41,400 range. A successful test of this support level will push Dow Jones towards the 50 MA at 40,986.

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