Nasdaq 100 Price Analysis: New Coronavirus Stimulus Package Remains the Talking Point

Stocks and indexes traded with mixed signals yesterday amid dwindling prospects of a renewed Coronavirus stimulus package and the ever-increasing Covid-19 cases in the US.

The Nasdaq 100 (NDX) was badly affected as traders ‘cashed-out’ of most of their positions on big tech stocks, which have been rallying since March. The NDX dropped by about 1% as several FANG stocks were bearish on Monday. Facebook (NASDAQ: FB) and Netflix (NASDAQ: NFLX) fell by about 2% each, while Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN) fell by 1.5% each, and Alphabet (NASDAQ: GOOG) slipped by 0.9%.

Investors have been ‘holding their breaths’ over a Coronavirus stimulus package for a while now. President Trump signed several executive orders over the weekend, most of which were aimed at prolonging Coronavirus relief for Americans.

The orders will prolong the distribution of unemployment benefits at a diminished rate, extend student loan repayments as far as the end of the year, increase federal protections on evictions, and implement a payroll tax holiday. Many analysts are confident this move will appease lawmakers to settle on a deal.

Trump’s executive order comes after Congress failed to agree on a Coronavirus stimulus package last week. Several benefits from the original package signed at the beginning of the year have already elapsed since July, eliciting worries over the US economy in the coming months. Some analysts predict that this could usher-in economic weakness this month.

Nasdaq 100 (NDX) Value Forecast — August 11

NDX Major Bias: Bullish

Supply Levels: 11148, 11307, and 11400.

Demand Levels: 10895,10652, and 10500.

As projected in the last analysis, the NDX has begun a descent to the 11000 – 10890 levels after failing to climb above the 11307 resistance. Although it is unlikely at this point, we could see a correction to the baseline of our ascending channel (10895) where the NDX will likely find strong support.

On the flip side, however, the NDX could bounce off the 11068 support and approach the 11307 area once again.

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