The US Tech Index, otherwise known as the Nasdaq 100, has bounced off intraday lows after the US Durable Goods Orders (and the core component of the data) showed a slight improvement for May 2020.
According to data released by the US Census Bureau, the Durable Goods Orders for May 2020 fell by -17.2% (consensus – 19.0%), and the Core Durable Goods Orders (Durable Goods Orders minus excluding transportation) came in at -7.4%, as opposed to the -14.8% that the markets expected. However, both data were still lower than the previous month’s figures which saw the Durable Goods Orders, and the core component hit -14.7% and -0.4% respectively.
However, this month’s figure adequately captures the full impact of the coronavirus pandemic, and the markets are celebrating the fact that the numbers came in better than expected.
Investors on the Nasdaq 100 are also cheering other data which show that the Initial Jobless Claims for the week ended May 23, 2020, came in at 2123K, which was not much higher than the 2100K the markets predicted and lower than last week’s 2438K. These data have helped the Nasdaq 100 stave off earlier losses posted on the day as a result of the drop in Facebook shares.
The Nasdaq 100 is currently 0.12% higher on the day and trades at 9442.6 presently.
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Technical Outlook for Nasdaq 100
After hitting intraday lows of 9323.4, the Nasdaq 100 has pushed up nearly 43 points and is testing the 9452.0 resistance once more, following Tuesday’s drop and yesterday’s dip and subsequent recovery. A break
above this price level targets 9626.4, as indicated in some of my earlier analyses of this index. Above 9626.4, the Nasdaq 100 will be able to push higher towards the all-time highs registered earlier in the year.
On the flip side, a failed attempt at surmounting 9452.0 will cause the Nasdaq 100 to slip into a downward retest move of 9264.4, with a breakdown of this level allowing for a test of 9167.4 and possibly 9092.3.
8945.7 and 8691.0 may become new targets if the channel breaks down.