Nasdaq 100 started the day higher amid optimism that President Trump will announce later today a relief package for households and businesses. Markets trying to stabilize after the sharp selloff but the number of coronavirus cases in Europe and the US is likely to grow while economic data and corporate earnings is likely to deteriorate further, pressuring stock prices.
Crude oil price managed to rebound today after yesterday’s selloff adding 6.20% higher at $33.07 per barrel boosting further investors sentiment. The CBOE volatility VIX index is trading 3.55% lower at 52.52 shownig the improved sentiment today.
Markets now priced in a 50% probability that the Federal Reserve would cut interest rates by at least 50 basis points in the next policy meeting, bringing the benchmark interest rates down to 0.25% from 1%.
Nasdaq trades 0.30% higher at 7,965 as the index attempts to stabilize after yesterday’s selloff. The index is just 1% awwway from entering bear market as it has lost 19% since the February highs. The technical outlook for the Nasdaq inde is bearish now and only a move above the 200-day moving average might cancel the negative momentum.
On the upside, the initial hurdle for the Nasdaq will be met at 8,249 the daily top. More offers might emerge at 8,419 the 200-day moving average. In case of a move higher, next supply zone stands at 8,858 the 100-day moving average.
On the flip side, Nasdaq initial support will be met at 7,970 today’s low. Next critical support stands at 9,947 the low from yesterday’s session. In case of a further correction, the next support area is at 7,825 the October 8th 2019 low.