Nasdaq 100 Retreat Ahead of Phase One Deal and Earnings Reports

Nasdaq 100 started the session lower as earnings season kicks off. JPMorgan Chase (JPM) reported earnings of $2.57 a share, beating Wall Street consensus estimate. Citigroup (C) also reported earnings that easily beat analyst estimates, driven by robust fixed-income trading revenues.

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NAS100

NAS100 (11324.8)

In Profit

STOP

SELL

TP1

11478

TP2

11338

On the economic data, the December US consumer price inflation rose 0.2% month-on-month – lower than expected by economists. The annual rate of headline inflation came in at 2.3% versus 2.1% in November, while the core inflation rate remained at 2.3%.

Traders focus is on phase one trade deal details and the signing ceremony tomorrow in Washington. The US administration will remove China’s status as a currency manipulator while China has agreed to purchase about $80 billion manufacturing goods and $50 billion more energy supplies from the USA over the next two-years.

Dow Jones started 0.34% higher at 29,006 while S&P 500 index is 0.07% lower at 3,285. The CBOE Volatility Index or fear index (VIX) gives up 0.02% at 12.30 just to confirm the positive market mood.

Read our Best Trading Ideas for 2020.

Nasdaq 100 Index Bullish Momentum Intact

Nasdaq trades 0.14% lower at 9,259 as the bulls take a breather after the consecutive record highs in 2020. The index trading just 20 points below the all-time highs and the momentum is bullish despite the weak start today. Corporate earnings will drive the index the upcoming weeks as investors need a fundamental catalyst to refuel the rally.

On the downside, Nasdaq 100 index immediate support will be met at 9,226 today’s low. More bids might emerge at 9,157 the low from January 10th. In case the index pierces that level the next support stands at 9,063 the low from January 8th.

On the contrary, initial resistance for Nasdaq 100 index stands at 9,272.16 the daily top. The strong earnings reports and increased volume might push the index to 9,274 the all-time. Next resistance level to the upside for bulls to watch is the 9,350 psychological figure.

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