US equity indices started mixed the trading session after indices inched to all-time highs as Q3 earnings season heats up. Nasdaq started the day in a cautious mood as US-China talks mounted hopes of a November interim deal. The trade negotiations outlook remains volatile as both sides give and take. Investors have increased their bets for a cut by FOMC tomorrow, they see a 94% chance of the Fed to lower interest rates by 25 bps; that will be supportive for equities.
On the data front, United States Pending Home Sales (year over year) came in at 3.9%, topping expectations of 1.4% in September, the monthly reading for Pending Home Sales came in 1.5% above forecasts of 0.9% in September.
Earlier today, the United States S&P/Case-Shiller Home Price Indices (year over year) came in at 2%, below forecasts of 2.1% in August. The Redbook Index (year over year) climbed from previous 4.3% to 4.5% on October 25.
The Dow Jones Industrial Average started 0.03% higher at 27,099, while the S&P 500 trading 0.01% lower at 3,038. The CBOE Volatility Index (VIX) adds 0.24% today at 13.35 to confirm the quiet market mood.
Nasdaq positive short term momentum holds as the index trades close to all-time high and inside the ascending trend channel, which started early 2019. Nasdaq managed to re-enter the ascending channel last week giving bulls again the upper hand. On the upside, first resistance stands at 8,319 the daily high and then at 8,339 the all-time high. Investors looking to enter long positions could buy if the index manages to close above all-time high (8,339), targeting a move above 8,500.
On the downside, first support stands at 8,297 today’s low, then at 8,156 the low from October 25th, while more bids will emerge at 8,000 round figure. A short position might be initiate if the index settles below the 100-day moving average at 8,042.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.