Nasdaq 100 pairs early losses as traders return to their desks after the New Years Day holidays. Stocks retreated on Friday after the news about the killing of an Iranian General. Investors are now afraid retaliation from Iran and attacks against American targets in the Middle East.
The macro data disappointed traders on Friday as Institute for Supply Management reported that the manufacturing activity contracted in December, falling from 48.1% in November to 47.2%, that was the weakest reading since June 2009.
Earlier today the United States Services PMI came in at 52.8 topping forecasts of 52.2 in December, the PMI Composite came in at 52.7 above the expectations of 52.2. The figures helped stocks in early trading.
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Nasdaq 100 Index Price Analysis
Nasdaq retreat today for the second day but Nasdaq as of writing managed to recover from early losses and gives up 0.09% at 9,012. Bulls are still in control of the Nasdaq index despite the recent pullback.
On the downside, Nasdaq initial support will be met at 8,943 today’s low. The low from December 31st at 8,910 will provide some bids. The next level on the downside for the bears to watch is at 8,636 the December 12th low.
On the flip side, first resistance will be met at 9,017.29 the daily top. The high from Friday’s session at 9,064 will be the next resistance. The critical supply zone will be met at the all-time highs at 9,093, which if breached will drive the index to unchartered territories.
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