A slew of uninspiring data seems to have affected the trading mood on the Nasdaq 100 Composite Index. Not even today’s stellar performance of Tesla stocks was able to impact the Nasdaq 100 index positively.
Data released today showed a slowing retail sales figure, mixed industrial production and capacity utilization data, as well as a slight improvement in the Consumer Sentiment Index as measured by the University of Michigan (UoM).
The UoM Preliminary Consumer Sentiment Index in the US was up slightly from 72.5 in July to 72.8 in August. This reading was slightly better than the market expectations of 72 and showed a fall in the Current Economic Conditions Index from 82.8 to 82.5. There was an improvement in the Index of Consumer Expectations, as it climbed from 65.9 to 66.5. Chief Economist Richard Curtin remarked that overall confidence in economic policies under the Trump administration was at its lowest levels, with the present deadlock in negotiating additional stimulus packages increasing uncertainty. He also said that there was now a heightened need to deliver precautionary funds to offset current lapses in the economic relief programs.
Industrial production and capacity utilization data also failed to stimulate the markets. Retail sales data beat expectations but were woefully short of figures seen in May and June, indicating a progressive slowing in the growth of the US retail sector, one of the hardest hit by the coronavirus pandemic.
Technical Outlook for Nasdaq 100
The daily candle is down 0.2% and trades at 11167..3. The price sits around the 11176.3 resistance, which yesterday’s daily candle tested but failed to break. This resistance is what stands between the Nasdaq 100 and the current all-time high at 11288.6. A break to the upside and the all-time high is next. Above that level, the Nasdaq 100 aims for news highs, with 11453 beckoning.
On the flip side, a rejection at 11176.3 opens the door for a possible move towards 10866.5, with 10505.4 and 10307.3 lining up as potential downside targets. These targets all require a breakdown of the channel to be achieved.