Uninspiring Drop In Jobless Claims Halts the Nasdaq 100
Initial unemployment claims fell slightly this week to 1508K, down from the 1566K registered last week. However, this figure was higher than the expected value of 1300K, showing that while the number of people filing for initial unemployment benefits is falling, it is not falling as much as the market wants.
This perhaps explains why the Nasdaq 100 has had a very lukewarm day, with the index staying virtually unchanged with a 0.06% drop. This is the 3rd straight session where price continues to trade at just under the 10,000 mark, and is an indication that the Nasdaq 100 requires something more drastic to take it towards the previous all-time highs of 10156.50.
The unemployment claims figure which continues to remain at 7-digit levels remains a considerable worry for the markets. Rising cases of the coronavirus in the US are also adding to the market worries, especially as there have been no reported advances in drug or vaccine development by US drug companies since Gilead Sciences reported its progress with Remdesivir.
The Nasdaq 100 Price continues to trade within the ascending channel that has encapsulated the price action from mid-April till date. The all-time high of 10,155.9 is the price to beat for buyers. If the price breaks above this resistance, 10,291.50 is the target to aim for.
The reverse scenario could occur if the price candles for today and tomorrow fail to push above the all-time high. This creates a lower high which could signal a stall in the uptrend and opens the door for a pullback to the 9730.2 price level, with the 9626.4 and 9452.0 price levels continuing to remain relevant to the current price scenario.