Nasdaq started the week approaching record intraday highs as investors continue to bid the technology stocks after a drop in new coronavirus infections.
Investors ignored the technology front of the trade war between USA and China after President Trump threatened to put restrictions on more Chinese companies. News that China plans to order more agricultural products and crude oil from the USA offsets the negative sentiment after the cancellation of the meeting on Saturday between China and the USA to discuss the phase one deal progress.
NY Empire State Manufacturing Index dropped to 3.7 in August below the analyst’s estimates of 15 and the previous reading of 17.2. The report on Home-builder confidence came in at 78 better than expected, and above the prior reading of 72.
Tesla is among the top performers adding over 7% after analysts see rising demand in China and despite the reports that 11,456 Tesla vehicles registered in China in July, down from 15,000 in June. JD.com add over 4% after the company reported better than expected earnings and revenue. Nvidia also rallies after an upgrade in the price target for the stock.
Nasdaq 100 Daily Technical Analysis
Nasdaq 100 trades 1.15% higher at 11,260, trading above the record closing while earlier today stopped just five points away from the intraday record highs. Light volumes might be an issue for the bulls at record highs, but technically there is nothing to worry, as the picture is clearly bullish, and the pullbacks should be considered as a buying opportunity.
Resistance for Nasdaq stands at 11,276 the daily high, while the all-time intraday highs at 11,281 would provide the next hurdle. If the bulls break that high, then the next resistance is at 11,350 psychological mark.
On the other side, immediate support for Nasdaq is at 11,142 today’s low. More buying interest might emerge at 10,854 the low from August 12. Bearish traders will join the action if the index breaks below 10,513 the 50-day moving average.