Nasdaq rebounds strongly today ahead of major technologies earnings reports later on the week and on speculation of a fresh stimulus up to one trillion from the U.S. administration. Nasdaq managed to recover almost all of previous Friday’s loses after a rise in tensions between USA and China, amid the closures of the Chinese consulate in Houston, Texas and the closure of U.S. consulate in Chengdu.
Investors left behind the rising number of new coronavirus infections as the total number of infections in the USA has surpassed 4.2 million while the death toll in the country stands at 146,000. World Health Organization Director Tedros said that the coronavirus outbreak is the most severe global health emergency that has ever been declared, as the global infections rise to 16.2 million people and the death toll reached 648,900.
Google extended the work from home order through summer 2021 while it releases the earnings report on Thursday the same day that Apple will report. Facebook will report on Wednesday. Moderna announced that it would start testing of the coronavirus vaccine with 30,000 volunteers.
Nasdaq 100 Daily Technical Analysis
Nasdaq 100 is 0.73% higher at 10,437, as the bulls are in full power and the positive momentum that started after the March lows continues inside the rising trend channel that drives the index safely to higher levels. The healthy rally corrects on profit-taking moves and allows new investors to enter the market, as the index exits overbought levels.
While the earnings report will be the primary driver of the index, we can spot that a minor resistance is at 10,507 today’s high. The top from July 23 at 10,726 would be matched with aggressive offers. A clear break above might challenge the record highs for the index at 10,839.93.
Bearish traders need to see a reversal today a close below the daily low at 10,399. What can boost the bears’ confidence is a close below Friday’s low at 10,192, the lower band of the ascending channel. The 50-day moving average at 9,962 is the next level to watch on the downside.
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Nasdaq 100 Daily Chart
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