Nasdaq started the week in weak mood and low volumes as traders taking some profits off the table after the recent trade deal rally. The trade talks outlook remains volatile as both sides give and take. Vice Premier Liu said that China willing to cooperate with the US on trade balance, market access and investors’ protection.
Investors now increasing their bets for a cut by Fed later this month, they see an 85% chance of the Fed to lower interest rates in late October; that will be supportive for stocks.
The Dow Jones Industrial Average started 0.03% higher at 26,840, while the S&P 500 trading 0.02% lower at 2,969. The CBOE Volatility Index (VIX) gives up 0.32% today at 15.53 to confirm the nervous market mood.
Nasdaq shows strength in the short-term supported by its long-term uptrend as the index trades outside and below the ascending trend channel which started early 2019. The index managed to re-enter the ascending channel last Friday but failed to close inside creating a shooting star. On the upside, immediate resistance stands at 8,063 the daily high and then at 8,155 the high from September 24th. Traders looking to enter long positions could buy if the index manages to close above Friday’s high (8,117), targeting a move above 8,200. On the downside, immediate support stands at 8,036 today’s low, then at 7,664 the low from August 5th, while more bids will emerge at 7,300 lows from May. A short position might be initiated if the index settles below the 100 day moving average at 7,975.
In Europe equity indices trading lower, the FTSE 100 is 0.43 percent lower at 7,215 as the pound trades at 1.26. CAC 40 in Paris is 0.37 per cent lower at 5,644.Download our latest quarterly market outlookfor our longer-term trade ideas.
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