The Nasdaq 100 has given up early gains posted on the market open. It is now trading lower, despite comments by the White House Chief of Staff suggesting that negotiations over an enhanced stimulus package were going well.
Mark Meadows, the White House Chief of Staff, hinted in a Fox Business interview on Wednesday that negotiations between the Republicans and Democrats were on the right path.
However, other things seem to be weighing on the minds of investors. Investors look like they want to see a deal between Democrats and Republicans before making a significant market move. Wednesday sees the release of the FOMC minutes where the Fed is not expected to make any substantial changes to its recent rhetoric. The Nasdaq 100 is down 0.2% and currently trades at 11432.0.
Technical Outlook for Nasdaq 100
Yesterday’s surge to new highs stalled at 11420.3, just short of the 300.0% Fibonacci extension level of the move that started on 10th March and ended on 23rd March. Today, price opened a shade higher before retreating. However, the Nasdaq 100 has bounced from intraday lows and is heading back towards yesterday’s high.
11453.2 remains the price to beat for bulls. If price can take out this level on its way up, we could see a push towards the 327.2% Fibonacci extension at 11887.1, even as price heads towards the upper channel border.
On the flip side, rejection at 11453.2 allows 11176.3 to come back into the picture as the immediate downside target. Further support at 10866.5 and 10505.4 may only come into play if the channel’s lower border breaks down.
If the FOMC reiterates the contents of the previous minutes (‘doing whatever it takes to support the economy or the financial markets’), we may not see a noticeable change in the Nasdaq 100.