Nasdaq 100 Hits Record Highs As Poor NFP Data Raises Stimulus Hopes
The Nasdaq 100 index has powered to new record highs after investors on the tech-heavy index decided to focus on stimulus hopes, rather than the downbeat jobs report.
The dire nature of the jobs report, which is the first time the payroll numbers plunged since April, has heightened expectations that the Fed would have to step in at some point with some kind of stimulus. Investors have chosen to focus on this stimulus expectation, rather than the jobs report which had already been priced in by investors.
Technical Levels to Watch
The ascending trendline has provided support for the price action throughout the week, enabling the surge seen on Thursday and Friday that has materialized as a new record high at 13078.1. This move has allowed the Nasdaq 100 to violate the 12973.9 resistance; a time/price filter confirmation provides affirmation for the breakout.
On the flip side, a breakdown of the trendline could be the precipitating factor that allows sellers to drive prices lower. If this occurs, 12489.7 and 12163.4 could serve as the initial targets to the south. 12003.6 and 11820.4 may also become relevant if further declines are seen on the index.