Nasdaq 100 Hits Fresh All-Time Highs On China Stimulus
Nasdaq 100 has reached new all-time high taking out the high from last week. PBOC said that the coronavirus crisis impact on the economy expected to be limited to ease concerns over a global economic slowdown. The central bank of China also said that it would continue to use multiple monetary policy tools.
On the economic data, the U.S. Producer Price Index came in at 0.5% topping expectations of 0.1% in January. The yearly Producer Price Index reading came in at 2.1%, also above forecasts of 1.6%. The Building Permits came in at 1.551M, above the expectations of 1.45M in January, while the Housing Starts came in at 1.567M, above estimates of 1.425M.
Later on the day Fed will release the minutes from its policy meeting in January, where the central bank held interest rates at unchanged and said it would monitor the coronavirus outbreak impact on the global economy.
Nasdaq trades 0.77% higher at 9,807 on a clear bullish path as any pullback presents a buying opportunity. The index has reached overbought area according to the RSI 14 index at 74.03, so we can’t rule out a sharp correction.
On the upside, resistance for the Nasdaq index will be met at 9,811 the daily and all-time high. Next resistance will be met at 9,900 psychological resistance.
On the flip side, the first support for the Nasdaq 100 will be met at 9,777.10 today’s low. Next support area stands at 9,656 the low from February 13th. In case of a further pullback the next support stands at 9,489 the low from February 10th.