Nasdaq 100 Becomes Aggressively Bullish, Aims at New All-Time Highs

Wall Street equities saw significant growth yesterday, with the technology and financial sectors leading the rally, as investors await big bank earnings this week. JP Morgan, Citigroup, Bank of America, Goldman Sachs, and Wells Fargo are the major names headlining the Q3 report releases this week.

Based on a report by Factset, earnings expectations over the past three months are on the high side. Investors’ forecast shows an increase of 4.8% YoY in the S&P 500 (SPX) earnings from the -25.3% forecast recorded in June.

Meanwhile, investors seem to be unbothered by recent election-related reports and are instead looking ahead for post-election stimulus talks. In the meantime, the election-related headlines include President Trump’s recent call to cancel the second presidential debate. Meanwhile, Democratic nominee Joe Biden is still leading the polls massively against Trump.

In other news, the VIX volatility index has dropped for its fourth consecutive session to 28.0, while the US dollar (DXY) has dropped to its lowest point in three weeks. Asia-Pacific markets traded higher today and were led by gains in mainland Chinese, Australian, and Japanese shares.

Nasdaq 100 (NDX) Value Forecast — October 13

NDX Major Bias: Bullish

Supply Levels: 12220, 12420, and 12600.

Demand Levels: 11890, 11650, and 11307.

The Nasdaq 100 (NDX) has performed exceptionally well as it continues on its upwards trajectory. Based on the 4-hour chart, the index is aiming at getting back into its original channel and will likely do so in the coming days or weeks.

The index was met with strong resistance at the 12220 area yesterday and underwent a slight retrace. However, at press time the NDX has broken above that line and is trading at the 12240 area based on sights from pre-market charts. This is a major hurdle for the index to scale given that it is the index’s all-time high.

Nonetheless, what is certain is that the NDX will record a new all-time high soon.

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