Investors remain cautious on the Nasdaq 100, as US House Speaker Nancy Pelosi drafted a letter to lawmakers on Tuesday, requesting amendments to the stimulus plan proposed by US President Donald Trump. This letter puts a clog in the wheel of the buyers on the index, dampening the initial bullish sentiment that the index has shown in the two days since President Trump’s proposal became public.
The annual core inflation in the US remained unchanged at 1.7%, while annual core CPI was 1 point lower at 1.7% instead of the 1.8% that the markets expected. These figures induced no change in the market sentiment on the Nasdaq 100. The focus of investors on the index remains the stimulus package, as well as the forthcoming US elections, which come up in twenty days from now.
Technical Outlook for Nasdaq 100
Today’s doji candle shows indecision on the part of buyers or sellers.
This has stalled the push to reclaim the all-time highs at 12467.8. This level represents the price projection from the break of the neckline of the reverse head and shoulders pattern.
On the flip side, lack of follow-through buying could allow for a pullback towards 12003.6, with 11794.1 and 11567.6 lining up as potential downside targets in the near term. The former is especially important, as it could be a bounce point from which the upside push to reclaim the record high could gain momentum.