The Nasdaq 100 is trading lower today for a number of reasons. We all thought that the business between the US and China as far as tariffs were concerned had ended with 2019. We may have been wrong, as US President Donald Trump has issued new tariff threats to China over the coronavirus pandemic. President Trump has been very vocal in his rebuke if China over its handling of the outbreak of the coronavirus. US Secretary of State Mike Pompeo took the threats to another level when he suggested on an ABC News Sunday morning program that the coronavirus was an artificial creation.
With markets now responding more to situations and comments that have to do with the economics of the pandemic, the adversarial tone of both the US President and his foreign secretary have sparked off a new twist to a continuously evolving situation and has spooked the markets.
The Nasdaq 100 is presently trading -0.69% lower at 8707.5.
The Nasdaq 100 is trying to claw back gains and presently trades at 8760.6. The daily candle is resting on the 8691.0 candle and today’s close will determine if the candle has broken below this price level or not.
A breakdown of 8691.0 allows the Nasdaq 100 to reach towards 8442.5, which is the lower barrier of the range identified last week. Further decline brings in 8160.2 and 8015.5 into focus.
A close above 8691.0 allows the index to reach towards the upper boundary of the range at 8945.7. Price needs to breach the 8945.7 price resistance to allow further advance towards 9092.3 and 9167.4, which served as last week’s high. Attainment of 9264.4 allows price to reach the point D in the crab harmonic pattern.