The Nasdaq 100 is off its intraday highs today after the University of Michigan Consumer Sentiment Index fell to 73.2 (versus the consensus) of 79. This figure was also lower than the previous month’s number of 78.1.
According to the publication, the Current Economic Conditions component of the index dropped to 84.2, down nearly three points from the previous figure of 87.1. The Consumer Expectations Index fell from 72.3 to 66.2. The dip in consumer sentiment is reflective of the mood of US consumers following the surge in US coronavirus cases in July.
The data did not dampen sentiment on the Nasdaq 100, which remained resolute despite the 6% drop in the share price of Netflix. Optimism about a coronavirus vaccine is lifting the market.
Top on the gainers’ list is Verona Pharma, listed on the Nasdaq 100 as an ADR. It has surged 137% on the day after it said a Phase 2b trial to evaluate a treatment candidate for chronic obstructive airway disease improved lung function and met its targets.
Several pharmaceutical stocks are surging as well on the day; Checkpoint Therapeutics, Allena Pharmaceuticals and Applied DNA Sciences are among the top gainers, garnering gains of 40.12%, 40.06% and 37.15% respectively.
Outlook for Nasdaq 100
The index continues to trade within the ascending channel but looks set to end the week lower despite surging to a new high on Tuesday. The channel continues to be the guide to price action, with immediate support located at 10307.3 while the closest resistance is found at 10866.5. Above this resistance, the Nasdaq 100 could aim to reclaim the record high or even surpass it, with 11,453 looking like the nearest candidate as new price target above the current all-time high.
Below 10,307.3, support targets exist at 10156.50, 9867.1 and 9730.2, in that order. The latter is only attainable following a breakdown of the channel.
Nasdaq 100 Daily Chart