Nasdaq 100 Lead Wall Street Gains, as Biden Comes Into Power

Nasdaq 100 Lead Wall Street Gains, as Biden Comes Into Power

Wall Street recorded significant gains overnight as President Joe Biden’s transition into power improved the prospects for additional fiscal stimulus measures and other government activities to combat the negative effects of the coronavirus pandemic.

Before this, Treasury Secretary nominee Janet Yellen expressed her support for the new president’s $1.9 trillion fiscal stimulus spending plan and opposed tax hikes, which would likely trigger more rallies across equity markets.

Meanwhile, the Nasdaq 100 (NDX) led other major US indices to new record highs. S&P 500 (SPX) company gains were led by the communications services (+3.6%), consumer discretionary (+2.3%), and information technology (+2%) sectors.

The NDX rose by a whopping 2.3% to record a fresh all-time high at 13433, led by Alphabet (NASDAQ: GOOG) (+5.36%), Amazon (NASDAQ: AMZN) (+4.57%), and Microsoft (NASDAQ: MSFT) (+3.65%). Meanwhile, Netflix (NASDAQ: NFLX) was the biggest gainer with a 16% jump after reporting massive subscriber growth and share buyback plans in their earning report.

Wall Street companies continued to post positive earnings reports, with 12 out of 13 S&P 500 companies surpassing market forecasts. That said, subsequent reports are expected to come in at an impressive number, which should sustain the market mood for a while.

NDX – Hourly Chart

Nasdaq 100 (NDX) Value Forecast — January 22

NDX Major Bias: Bullish

Supply Levels: 13434, 13500, and 13600.

Demand Levels: 13300, 13200, and 13110.

Following a recent drop to the lower end of our ascending channel at 12793, the NDX has seen an unprecedented rebound to the top end of the channel, recording a new ATH at 13433.69. That said, we expect to see a correction in the coming hours below the 13300 support, at least.

Furthermore, our hourly MACD shows that the index is now in overbought territory, and a modest correction should be just around the corner.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results. 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.