Nasdaq 100 to Continue Upwards as US Congress Drag Stimulus Talks

The Nasdaq 100 (NDX) continued on its bullish trajectory from last week on Tuesday, as investors’ focus remains fixated on the approval of a much-needed stimulus package soon.

A recent joint statement released by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer indicates that the Democrats are ready to lower their stimulus package expectations, making it more likely to see a relief bill pass before the end of the year.

Pelosi and Schumer noted that the $908 billion bipartisan relief bill should be the starting point for negotiations, adding that they needed to act fast and in good faith and agree soon.

Senate Majority Leader Mitch McConnell has also alluded to the possibility of both sides coming together in a bipartisan manner.

Meanwhile, McConnell has already begun circulating a $500 billion draft proposal, which he believes is “something that would be signed into law by the president, be done quickly and deal with the things we can agree on now, ” making it unlikely that these negations would yield any meaningful results.

Nonetheless, both parties agree that a form of stimulus is necessary, making it very likely that they will strive to reach an agreement, at least in the short-term. This could bolster the NDX even further and place a floor against any sharp declines, as investors start to price in the possibility of additional stimulus measures.

Nasdaq 100 (NDX) Value Forecast — December 8

NDX Major Bias: Bullish

Supply Levels: 12610, 12650, and 12750.

Demand Levels: 12500, 12439, and 12350.

The NDX is currently trading up a steep ascending channel and is showing the prospects for further price gains. A break above the all-time high at 12610 could precipitate a fresh rally to the 12750, the top of our channel. That said, a sustained fall below the 12500 seems very unlikely at the time. We should expect to see a new ATH recorded when the market opens later today.

Already, the NDX has refreshed its daily highs around 12602 (pre-market data).

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