The Nasdaq 100 has erased losses suffered in 2020 as the Fear and Greed index continues to remain constant at 42. The Nasdaq 100 was able to close above the critical 8945.7 resistance level and is now challenging the resistance at 9092.3 in its attempt at making new highs.
The global stock markets received a boost from the positive Chinese export numbers. The dismal initial jobless claims data did nothing to dampen sentiment on the Nasdaq 100, which was boosted by a slew of better-than-expected earnings numbers.
Lyft was able to fend off coronavirus-induced fears analysts had about its earnings to showcase a 23% increase in revenue over the same period for the previous year. This was in spite of a 75% drop in passenger traffic due to the coronavirus pandemic. Lyft also posted a loss of $398.1million, which was lower than for the period last year. It is up 23% in today’s trading.
Other stocks which saw positive earnings that lifted the Nasdaq 100 include ViacomCBS, which soared 16% after inking a new distribution deal with YouTube. The company also reported a spike in the number of users who subscribed to its streaming services.
The Fear and Greed Index has remained at the levels it started the week at, showing that there is still some element of market fear and therefore public participation is still in its early stages. However, things could soon change as data is now showing that the stock market in outperforming the bond market. This indicates that traders who had sought comfort in bonds may now start to take interest and participate in the stock markets.
The Nasdaq 100 needs to establish a higher high to complement the higher lows, which would support the resumption of the uptrend. This has to manifest by the Nasdaq 100 price action crossing above the 9264.4 price level (point D in the harmonic pattern). Attainment of this price level is consequent upon price assailing the 9092.3 and 9164.4 price areas. If a higher high that is above point D is established, 9452.0 is expected to be the next resistance level.
However, a price reversal from point D completes the pattern, leading to a decline that retests the 9164.4 and possibly 9092.3 and 8945.7 price levels, acting as support in sequence.