The Nasdaq 100 Index is surging higher this Monday, as optimism over a US-China trade deal heightened on a double impact report from China and the US.
Constructive talks were held by both sides on Friday and into the weekend, with officials from the White House indicating that a US-China trade deal was indeed close. Reports from China also indicate that the central bank in that country was willing to take steps to prop up the Chinese economy.
Chipmaker stocks, which have taken the brunt of the US-China trade imbroglio, all strengthened today. Stocks of companies such as Micron Technology, Advanced Micro Devices, Nvidia Corp as well as Baidu and Alibaba were all up between 0.4% and 1% individually on the renewed optimism.
The Nasdaq 100 index is presently trading at 8315.52, following the rise of the Nasdaq futures in pre-market trading. In the short term, it continues to push into newer highs territory, after breaching the upper border of the near-term ascending triangle.
The outlook is for the Nasdaq to continue to make new highs, which may take it well beyond 8400 if bullish momentum continues this week.
Profit taking could bring about a temporary pullback as the flip side to this setup, with 8188.25 likely to be the immediate price level that supports the pullback move. Further below, 8008 comes into focus (July 26, September 11 and October 24 highs).More content