Nasdaq 100 Price Analysis — November 3

Nasdaq 100 Price Analysis — November 3

The Nasdaq 100 (NDX) was the worst-performing major US index on Monday, as the technology sector continued on its weakened sentiment.

While the recent weakness in the industry is regarded as a crucial bearish factor for the NDX, a bigger reason for the slump in the index is due to investors taking flight from riskier assets ahead of the US Presidential Election today. Subsequently, market participants will be observing the central bank’s decision and jobs data later this week.

That said, it’s worth considering if the weakness in the tech sector will continue after the election or if this is just a retrace before a continuation upwards.

Meanwhile, the ratio between the Nasdaq 100 and the Dow Jones (DJIA) has gotten weaker over the past few trading sessions. This was like as a result of the displacement caused by the Coronavirus-induced crisis in the equities market. In the pandemic, tech stocks saw a boom, while the components of the Dow were not favored as much.

Traditional stocks on the Dow like Boeing (NYSE: BA), Caterpillar (NYSE: CAT), and Goldman Sachs (NYSE: GS) came under intense pressure as stocks like Zoom (NASDAQ: ZM), Peloton (NASDAQ: PTON), and Netflix NASDAQ: NFLX) flourished.

However, polling data suggests that Biden will likely emerge as president, which may strengthen the ratio between the Dow and Nas100 as tax hikes in the tech sector and infrastructure spending become possibilities.

NDX – 4-Hour Chart

Nasdaq 100 (NDX) Value Forecast — November 3

NDX Major Bias: Bearish

Supply Levels: 11307, 11560, and 11650.

Demand Levels: 11000, 10720, and 10511.

The NDX remains in a strong downward spiral since its 12220 high on the 12th of October. Meanwhile, it appears that the index has found strong support at the 11000 psychological levels, following several failed attempts to break below. Not so surprisingly, this level coincides with the base of our descending channel, indicating that we could see a bounce to the 11307 resistance soon.

Regardless, near-term price action across markets will likely be dictated by the outcome of the US Presidential Election in the ensuing hours and days.

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.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!

Author : Azeez Mustapha

Avatar

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