The Nasdaq 100 Composite Index is marching towards its 2020 highs with a view to attaining a new all-time high, as the main indexes on Wall Street trade in a mixed pattern this Thursday. While the Initial Jobless Claims data help market sentiment to remain upbeat, only the Nasdaq 100 is trending higher with good conviction, buoyed by the performance of the tech stocks.
The drop in the Initial Jobless Claims below the 1 million mark appears to be the main driver of the performance of the index. This is the first time since March that less than a million people have applied for unemployment benefits for the first time.
However, the lack of progress in the talks between politicians on both sides, aimed at extending the coronavirus stimulus payments, appears to be a cog in the wheel of progress towards new highs for the Nasdaq 100. White House economic adviser Larry Kudlow confirmed to CNBC news that talks had stalled. Kudlow also said in the same interview that he was encouraged by the decline in the Jobless Claims data, also adding that massive borrowing was needed to fight the pandemic.
Technical Outlook for Nasdaq 100
The index has cleared the 11176.3 resistance and seems bent on attacking the current all-time high at 11288.6. If price powers above this level, the 300% Fibonacci extension level at 11453.2 mark beckons.
Conversely, a failure to produce a convincing breakout above 11176,3 could lead to a price retreat, which has 10866.5 as the initial price target to the south. 10505.4 and 10156.5 represent additional downside targets, which need a breakdown of the channel’s lower border to have any chance at actualization.