The US markets and banks are on holiday today, which is why we are seeing minimal action on the Nasdaq 100 and other US markets. However, after four days of substantial gains, it would appear that the Nasdaq 100 futures have run out of steam as investors are now focusing on the coronavirus numbers and not on the jobs data or other positive US data.
As stated in my analysis yesterday, some states in the US are allowing fun spots to stay open during the US Independence weekend, and this could have some severe implications in terms of the domestic coronavirus infection rates. Coronavirus stats released next week could show if the weekend holiday parties in beaches lead to an increase in the numbers.
Many analysts, especially those from Wells Fargo, are already looking beyond the stellar jobs data. They are worried about whether a geometric increase in infection rates could roll back all the gains recorded since the gradual reopening of the US economy began two months ago.
The Nasdaq 100 is presently trading at 10355.2, a 0.04% drop in what is a quiet day of trading.
Technical Outlook for Nasdaq 100
The Nasdaq 100 is down slightly from yesterday’s all-time highs. The index continues to trade within the ascending channel, which has encapsulated price action from mid-April till date. The uptrend is therefore intact, but the price would need to breach the 10432.2 all-time high to continue the advance. A possible target to the upside for such a price advance would be the 241.4% Fibonacci extension from the 10 March to 23 March downward move, located at 10518.1.
On the flip side, a brief pullback which takes the Nasdaq 100 below 10156.5 would open the door towards 9867.1, with 9730.2 and 9626.4 being the immediate downside targets.
The US markets open in full swing next week, as Q2 2020 earnings results start to trickle in.
Nasdaq 100 Daily Chart