Nasdaq continues lower for the third straight day despite the rally in Dow Jones and the S&P 500 approaching all-time highs amid speculation for another stimulus package from Trump administration. Above that President Trump said yesterday that is considering the reduction in capital gains taxes in a move to support job creation after the coronavirus pandemic.
Meanwhile, the coronavirus cases surpassed 20 million globally while in the USA the cases have surpassed the 5 million, while tensions between China and USA continue to rise after the two countries imposed sanctions on high-level officials, while President Trump banned WeChat and TikTok in the USA.
As the trading war shifts to technology, investors taking some profits off the table as Nasdaq have hit several record highs the last weeks. FAANG stocks are under pressure amid fears of sanctions from the Chinese government and profit-taking as the shares trading at all-time highs. Apple is 1.08% lower at $446.06, Amazon is 0.55% lower at $3130, Google is 0.25% lower at $1493, Netflix is 1.22% lower at $477.
Nasdaq 100 Daily Analysis
Nasdaq 100 trades 0.44% lower at 10,919, as a healthy correction is here, just to support the bullish scenario for the index. The technical picture remains positive despite the three days pullback.
Support for Nasdaq is at 10,858 today’s low. The next level for Nasdaq to watch on the downside is 10,561 the low from July 31. A break below will also bring the index outside the rising trend channel that formed since the March lows, with negative implications for the index.
On the flipside, initial resistance for Nasdaq is at 10,949 the daily top. A break above might test 11,040 the high from August 10. More selling pressure awaits at 11,120 the all-time high.