Nasdaq 100 jumped higher on Tuesday and holding close to best levels of the session supported by rumours that Congress will come soon to an agreement on a fiscal stimulus that will help to combat the coronavirus outbreak impact on the business and economy.
Yesterday the Fed announced emergency measures and that will start to buy an unlimited amount of Treasurys & mortgage-backed securities, in an attempt to increase the liquidity in the markets. The G-7 leaders also said to do whatever it takes to restore global economic growth.
Dow Jones Industrial Average is 1600 points higher at 20191, the S&P 500 index is 7.68% higher at 2410, while the Chicago Board of Options Exchange’s VIX index is 6.22% lower at 57.75.
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Nasdaq Index Technical Outlook
Nasdaq 100 is 6.85% higher at 7328 as the index started with a big gap up and now trades at the best level of the day showing that the buyers are comfortable at the momentum. The technical outlook is still bearish despite today’s sharp rebound, and more selling pressure can’t be ruled out in the upcoming days.
On the upside, the immediate resistance for the index will be met at 7,332 the daily top. Next hurdle to the upside stands at 7,432 the top from March 16 trading session. More offers will be met at 7,865 the high from March 13th, trading session.
On the flip side, the initial support for the index will be met at 7,183 today’s low. More bids might emerge at 68857 the low from March 28th session. The next support area stands at 6,630 the low from March 23.
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