Nasdaq 100 started sharply lower as the number of coronavirus cases in the U.S., top 82,40, surpassing Italy and China, while Spain recorded the highest single day in deaths. Meanwhile, the economic data disappointment continues today after yesterday’s historic high of jobless claims. The U.S. Michigan Consumer Sentiment Index came in at 89.1, below the forecasts of 90 in March and well below the February reading of 101.
Yesterday, the Initial Jobless Claims for March 20, skyrocketed to 3,283k from 282k the previous week, reflecting the first and hefty punch of the coronavirus spread on the economy.
Dow Jones is 3.72% lower at 21705; the S&P 500 index is 3.39% lower at 2541. The volatility, VIX index of the Chicago Board of Options Exchange is 7.55% higher at 65.62.
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Nasdaq Index Support and Resistance
Nasdaq 100 is 3.63% lower at 7513 as the index gives up almost all of yesterday’s gains amid a rise in the coronavirus cases and dismal economic data in the U.S.A. Risk-off sentiment returns to markets after the Nasdaq yesterday managed to make two-week highs, and investors book some profits today amid high volatility markets. The technical picture has improved the last trading sessions, but the momentum is still bearish, and lower levels can’t be ruled out.
On the downside, Nasdaq initial support seen at 7,491 today’s low. Next support area is at 7283 the low from March 24th session. Below that level, the next target is at 6,630 the low from March 23th.
On the contrary, the initial resistance for Nasdaq 100 will be met at 7,592 the daily top. Next resistance stands at 7,879 the top from March 13th trading session. Next offer zone will be met at 7,886 the high from March 13th, session.
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