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Nasdaq 100 Ignores Impeachment and Hit Fresh All-Time Highs

Nasdaq 100

Nasdaq 100 started the day higher as investors ignore the vote for impeachment of President Donald Trump by the House of Representatives. The reason for the latest rally is the agreement of the Phase One deal between China and the U.S. The macro data are mixed this week. The United States Existing Home Sales Change (month over month) came in at -1.7%, below forecasts of -0.2% in November. Earlier the US initial jobless claims came in at 234K above the estimates of 225K, the four-week average climbed from the previous 224K to 225.5K on December 13.

The Philadelphia Fed Manufacturing Survey came in at 0.3 below expectations of 8 in December. The United States Current Account came in at $-124.1B, below forecasts of $-122.1B in the third quarter.

Dow Jones is 0.23% higher at 28,303 while S&P 500 is 0.14% higher at 3,195. The CBOE Volatility Index (VIX) adds 0.09% today at 12.67 just to confirm the positive market mood.

Read our Best Trading Ideas for 2020.

Nasdaq Trading in Overbought Levels

Nasdaq continues higher making fresh all-time highs in early trading. Bulls control the index for the short and the long term. On the upside, we have to search for the next resistance. The intraday high at 8,850 is the first barrier. Next level to watch is the 9,000 psychological mark. Nasdaq is in overbought territory as the RSI 14 index suggests with a reading of 73.09. A sharp correction can’t be ruled from the overbought levels.

On the downside, Nasdaq immediate support stands at 8,838 today’s low. The next support level is at 8,636 the low from December 12th. More buyers will wait to enter the market at 8,447 the 50-day moving average.