The Nasdaq 100 and other US indices have opened higher as risk-on sentiment takes hold of the markets. The US Presidential Election outcome remains in the balance, with Joe Biden pulling ahead in the battleground states of Michigan and Wisconsin, but only just. Still, the possibility of a legal challenge looms, after US President Donald Trump questioned some of the vote counts in some states.
There has not been a lot of market news this Wednesday for the tech index to feed on. However, gains on the Nasdaq 100 were primarily driven by the more than 2% increases seen in the share price of Apple and Amazon, which could be risk-on plays that a Biden presidency could help ease tensions with China.
Whatever the outcome, markets are also betting on a quick resolution of the stimulus impasse. However, there is always the threat of market uncertainty if the Republicans make good their threat to mount a legal challenge of election results in courts.
The Nasdaq 100 is currently trading at 11780.2, representing a 4% gain on the day.
Technical Outlook for Nasdaq 100
Today’s strong move takes the winning streak of the Nasdaq 100 potentially into the third day. This move has violated the 11608.5 resistance and looks good to push on to the next target at 11820.4. A break of this area brings in 12003.6 into the equation, as the Nasdaq 100 seeks to reclaim the October highs.
On the flip side, rejection at 11820.4 stalls the upside move and may produce a pullback towards 11608.5 with 11176.3 and 10866.5 serving as additional targets to the south.
Nasdaq 100 Daily Chart