The Nasdaq 100 index is losing ground today as US President Donald Trump dominates the news headlines at various levels. Trump’s feud with Twitter over the censorship of his statements and his press conference which is widely expected to detail the US response to China’s passage of the National Security Bill on Hong Kong are the headlines traders are watching this Friday.
After opening higher on Friday, Nasdaq 100 futures are down 0.58%, and this could dovetail into a weaker opening for the index.
Twitter is down 2% and in danger of making it three days of losses in a row after it flagged a tweet from the US President, which it said glorified violence. However, the tweet stayed up as Twitter deemed it relevant to ongoing issues of public importance. Trump had earlier signed an executive order that strengthened oversight on social media platforms and the companies that operate them.
The Twitter situation may all pale into insignificance after the US President’s press conference scheduled to kick off later today (time not yet confirmed). President Trump is expected to announce punitive measures against the Beijing government and officials directly or indirectly linked to the national security law’s passage, as well as cancellation of visas for students and researchers of universities connected to the Chinese military (as per a New York Times report).
Investors on the Nasdaq 100 may have decided to stay on the sidelines to see the fallout of the press conference and the Twitter situation.
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Technical Outlook for Nasdaq 100
From a technical perspective, the Nasdaq 100 has once more failed to break above the 9452.0 resistance, and price rejection at that area has preceded today’s drop. The markets may slide further if the US President’s press conference elicits an escalation of the US-China tensions, which could lead the Nasdaq 100 lower with 9264.4 in line as the first support target. A further decline brings in 9167.4 and 9092.3 into the picture as new support targets, with a breakdown of the channel also making 8945.7 and 8691.0 relevant to the situation.
Further advance on the Nasdaq 100 now depends on a clear break of 9452.0, which would then open the pathway towards 9626.4 and a chance art regaining the 2020 highs at 9755.9.