Nasdaq 100 retreat today after two straight days of gains as the debate around the fourth relief package continues while the earnings reports earlier today from McDonald’s and 3M failed to impress investors. On the macro data front, the Conference Board’s Consumer Confidence Index dropped from 98.3 in June to 92.6 in July, below the analyst’s expectation of 94.5. Consumer Expectations Index fell to 91.5 from 106.1, while the Present Situation Index jumped to 94.2 from 86.7. The Consumer Inflation Rate Expectations came down to 6.1% from 6.6%.
The Richmond Fed Manufacturing Index jumped to 10 in July from the previous reading of 0. The S&P/Case-Shiller, Home Price Index, came in at 3.7% below the expectations of 4% in May. The U.S. Redbook Index fell to 1.1% on July 24 from the previous 1.9%.
Investors await the Federal Reserve decision tomorrow, with analysts expecting the central bank to keep interest rates unchanged at 0-0.25% and to reiterate the Feds will to do whatever it takes to support the U.S. economy.
The earnings reports continue with AMD, Visa Amgen, eBay and Starbucks reporting after the closing bell.
Nasdaq 100 Technical Analysis
Nasdaq 100 trades 0.50% lower at 10,485, keeping the bullish momentum that drives the index alive despite today’s pullback. Higher levels are on the cards as long as the index remains inside the ascending channel that started in mid-March.
Looking at the daily chart, the Nasdaq Index will face immediate support at 10,445 the daily low. A break below 10,445 might pave the way for 10,247, the crossing point of the rising trend line. A break below would attract more sellers targeting 9,964 the 50-day moving average.
On the other side, intraday resistance is at 10,517 the daily top. Bulls need to clear 10,723 the high from July 23 which guards the record highs for the index at 10,839.93.
Nasdaq Daily Chart