Nasdaq 100 Stalls Despite Recording New Highs

Nasdaq 100 Stalls Despite Recording New Highs

Global market sentiment performed significantly well in the past 24 hours, with the tech-centralized Nasdaq 100 (NDX) setting a new record high on Wall Street after rising by about 1.47%. Meanwhile, the S&P 500 (SPX) and the Dow Jones (DJI) also made significant strides with +0.72% and +0.89% respectively.

The gains seen in the tech stocks yesterday was likely an extension of last week’s better-than-expected FAANG group earnings reports. It appears that investors continued to bet on these firms performing exceptionally well in work-from-home conditions. Traders also appeared to overlook the ongoing standoff in Congress to legislate the next fiscal stimulus package, as the extra $600 per week employment benefit expired on Friday last week.

In the North American trading session yesterday, President Donald Trump indicated that he was considering using executive orders to prolong specific unemployment benefits. How that is going to happen is still largely unknown, but many expect it to include holding off evictions.

Meanwhile, Coronavirus cases grew by 0.9% over the past 24 hours in the US.

NDX – Hourly Chart

Nasdaq 100 (NDX) Value Forecast — August 4

NDX Major Bias: Sideways

Supply Levels: 11068, 11200, and 11307.

Demand Levels: 10895,10771, and 10600.

From a technical standpoint, it can be observed that the Nasdaq 100 futures remain well within a consolidation range between 10980 and 11058, despite yesterday’s new record high.

Also, we can see that the NDX is having a difficult time breaking above the 11068 resistance despite the prevailing favorable conditions. That said, we are likely to see a modest retrace to the 10895 support where we could see some dip-buyers come in. A break below that level could send price to lower supports (10711) and subsequently, to the base of our ascending channel.

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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