The Nasdaq 100 and other US markets are largely shrugging off a record high number of jobless people making unemployment claims for the first time. The Nasdaq 100 is up by 3.29% on the day, taking it further on the path of recovery from last week’s lows.
Investors are pinning their hopes on a quick passage of the $2trillion stimulus package from the House, and that subsequent implementation will remedy the situation. Initial Jobless Claims had risen to a record 3.283 million claims, nearly double the market estimates and also ten times higher than the previous week’s numbers.
The massive spike in first-time claims for unemployment benefits is not entirely surprising. The coronavirus outbreak has shuttered business, and the layoffs that have followed have left millions without a paycheck.
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Technical Outlook for Nasdaq 100
Today’s price surge has taken the Nasdaq 100’s daily candle well above the upper barrier of the descending channel and on the way towards the 7834.6 resistance level, where the 22 October 2019 low is located. This move requires a confirmation of the possible breakout from the channel. A 3% penetration close above the channel by the daily candle would suffice. The 26 July 2019 highs at 8015.5 could become available as a target if the upside move overcomes the 7834.6 resistance.
On the flip side, a pullback from present levels could allow the price to retest the channel’s upper border at 7508.9, where the lows of 2 October and 2 November 2019 are found. A prior low at 29 March 2019 may become a new target, as could the 6904.0 support where the lows of 7 March and 3 June 2019 reside.