Nasdaq 100 Hits New Record On Upbeat US ISM Non-Manufacturing PMI

nasdaq 100

The Nasdaq 100 index continued on its record hitting run yet again, this time buoyed by upbeat readings from the US ISM Non-manufacturing PMI survey. Data just released from the Institute for Supply Management showed that the US ISM Non-manufacturing PMI rose to 57.0, which beat analysts’ expectations of a 50.0 reading and was a vast improvement over the 45.4 figure obtained last month. 

The Nasdaq 100 futures were already pushing to new highs on the day, and the latest data set continues a recent round of upbeat data which have served the US markets pretty well, even though the US Dollar has been mostly apathetic to it all. The Nasdaq 100 is up by 1.85% and hit an all-time high of 10,553.4.

Before the news release, a powerful rally from Chinese stocks set the tone for global stock market optimism this Monday, fuelling similar gains in the European indices as well as other US markets. A 5.7% rally in the Shanghai Composite index and a 5.66% jump in the CSI 300 Index set the tone for the tech-heavy Nasdaq 100, which has many listed stocks with exposure to China.

Outlook for Nasdaq 100

The Nasdaq 100 continues to trade within the confines of the ascending channel, with today’s candle aiming for the channel’s return line (i.e. upper border). The price action has touched off the 241.4% Fibonacci extension from the price movements of 10 March to 23 March, and this area is under serious challenge as the Nasdaq 100 continues to push hard to the north. A new high on the day cannot be ruled out at this point, but the price would need to surpass the previous high with a 3% penetration to establish a new high well above 10,565.

On the flip side, a retreat from the channel’s upper border targets the 10307.3 support, with 10156.5 and 9867.1 being the logical downside targets. Price is gradually running away from downside targets at 9626.4, 9452 and 9264.4. Only a breakdown of the channel will bring them back into focus.

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Nasdaq 100 Daily Chart

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