The NASDAQ 100 composite index is trading flat at market open after initial jobless claims Fell this week according to data released by the Department of Labor this afternoon. Initial jobless claims declined to 1.186 million applications, which was well below the consensus figure of 1.41 million. The number is also lower than the 1.435 million that was registered last week. Other data showed that continuing jobless claims failed to 16.107 million claims, dropping by 844000 in what can be said to be an improved number.
Despite the improved jobless claims figures for the week, investors are still concerned about the norm passage of the heroes act, which is supposed to form the bridge financing that will take over from the previous stimulus that expired late July. Presently, the moratorium that was granted on rents has lapsed. The $600 top-up paid on the unemployed benefits has also expired. The current situation leaves an estimated 20 million Americans vulnerable to eviction in the coming weeks unless the stimulus bill passes. Republicans are pushing for a reduction in the unemployment benefit extra payments to $400 while Democrats want the figure to stay at $600.
The $3.4 trillion plan is aimed at extending the enhanced unemployment benefits until early next year and will see continued payments of stimulus checks to Americans and dependent children to the tune of $6000 per household. Investors are hoping that the Senate would pass the stimulus on the final day of sitting before proceeding on a one-month recess.
The Nasdaq 100 is trading at 11099.3 or 0.05% lower as at the time of writing.
Technical Outlook for Nasdaq 100
The ascending channel on the daily chart of the Nasdaq 100 index continues to remain relevant to price action. The index recorded new highs yesterday, but price action for today remains flat as investors continue to await the passage of the stimulus bill.
Yesterday’s new record high at 11154.2 remains the price level to beat for bulls. 11453.1 which represents the 300% Fibonacci extension of the swing move from Sunday 10 March to 23 March, remains a viable price target if this all-time high price.
On the flip side, the retreat from the current price level target’s the former all-time high that was registered at 11069.3. below this price level, the next Downside target comes in at 10866.5, With 10307.3 and 10156.5 coming in as the other downside targets, attainable only by a breakdown of the channel’s lower border.
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Nasdaq 100 Daily Chart
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