The Nasdaq 100 has rocketed to new record highs after the upbeat durable goods orders report helped buyers overcome the slight selling pressure on Apple stocks. Apple and Tesla are preparing for stock splits, but this did not dampen the mood on the tech-heavy index. Not even reports of the firing of two test missiles into the South China Sea by the Chinese military “as a warning to the US” was able to dampen the mood on the Nasdaq 100 Composite Index.
As at the time of writing, the Nasdaq 100 was trading at 11829.6 or 0.78% higher on the day, as the index aims to make it a 5th straight winning session. Key to tomorrow’s market action will be the speech by FOMC Chairman Jerome Powell at the Jackson Hole virtual symposium, where he is expected to outline the Fed’s plan to adopt a new inflation target policy.
Technical Outlook for Nasdaq 100
The index continues to trade within the confines of the ascending channel, and the latest price push is nearing the channel’s return line, close to the 141.4% Fibonacci extension from the 2019 low to the February 2020 high. This price level (12120.2) may present itself as a new resistance target, wuth 11453.2 having been conclusively dispatched.
As has been the case in recent months, the Nasdaq 100 may decide to use the channel’s return line (upper border) as a point of rest, with a pullback from that level to the 11453.2 support as an initial downside target test. 11176.3 and 10866.5 form additional downside targets, but these are only achievable if the channel’s lower border gives way.