The Nasdaq 100 Continues to Trade Higher: Here’s Why

The Nasdaq 100 continues to shake off the coronavirus cold that has gripped the Dow and the S&P 500. It is up by 1,18% as the tech market starts the week on a positive note. The index is trading at 10053.2 at the moment after tech stocks shook off concerns about the impact of a possible 2nd wave of coronavirus infections on the US economy.

Today’s big story on the Nasdaq is that of SiNtx Technologies, which has seen its stock price stage a 245% spike on the day after the company said that a controlled lab study showed that its sintered silicon nitride oxide powder “inactivated” the COVID-19 virus. The knock-on effect of this news report is also sending several low-priced pharmaceutical stocks higher. 

What about the traditional big tech stocks on the Nasdaq 100? Facebook, Apple, Microsoft and Amazon are all marginally higher as well, with the highest gains made by Apple at 1.6% so far with just about an hour into today’s trading session.

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Outlook for Nasdaq 100

The Nasdaq 100 continues to trade within the ascending channel as it stages yet another attempt at breaching the 10,000 psychological resistance as well as the 10156.5 all-time high. Friday’s high was slightly short of this level, preventing a run towards new all-time highs. 

Price needs to break the 10156.50 resistance to form a new higher high. This setup will build on previous higher highs and lows formed within the channel to allow the Nasdaq 100 make a further push towards the 10,291.5 price level, where the 227.2% Fibonacci extension of the XA downward price wave of 6 March to 20 March is located. 

However, failure to push above 10156.50 means that a higher high has continued to elude the Nasdaq 100 index. This position could signal a stall in the upside move of the Nasdaq 100 and could open the door for a pullback towards 9730.2 at the initial instance, with 9626.4 and 9452.0 lining up as potential support targets. Only a price collapse below 9452.0 will bring in 9167.4 and 9092.3 as new support targets, and this move has the potential of occurring if the lower border of the channel breaks down.

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