Nasdaq 100 futures trade higher for the seventh consecutive trading session after the United States Consumer Price Index (CPI) came in at 0.8% in line with expectations for April. Low gasoline prices and weak demand for goods and services amid the coronavirus lockdown pushed the prices to lower levels. The CPI ex Food & Energy came in at 1.4%, below the forecasts of 1.7% in April. The U.S. NFIB Business Optimism Index came in at 90.9 below the expectations of 96.9 in April.
Sentiment also boosted after China earlier today announced a list of 79 U.S. products including rare earth metals, gold ores and silver ores for waivers from retaliatory tariffs that imposed during the trade war.
Optimism about a sharp recovery in the economy has boosted Nasdaq from the March lows. Now, Nasdaq is 40% higher since the March 23 lows.
Dow Jones Index spikes as Fed starts acquiring “fallen angel” ETFs; the Dow Jones futures are 0.44% higher at 24,233. S&P 500 futures are 0.35% higher at 2,933, while the Nasdaq futures are 0.39% higher at 9,316.
In Europe, stock markets are higher. In London, Vodafone boosts FTSE 100, and now targeting 6,000. Dax is 0.31% higher at 10,857, while the CAC40 is 0.20% lower at 4,481.
In commodities the Brent crude oil price rebound on Saudi Arabia production cuts which will sum up to 7.5 million barrels. Gold price keeps the bullish momentum above $1,700.
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Nasdaq 100 Technical Analysis
Nasdaq finished yesterday 0.78% higher at 9,192 marking the sixth consecutive positive trading session. The technical outlook is bullish now, and higher levels are on the cards.
On the upside minor resistance stands at 9,241 the high from yesterday. Next supply zone will be met at 9,312 the high from February 25. In case for a break higher then the index will close the gap down targeting 9,547 the low from February 21.
On the flip side, initial support will be met at 9,053 the low from yesterday’s trading session. The critical support stands at 8,695 the 100-day moving average which if breached will cancel the bullish momentum.
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