Nasdaq 100 Ticks Increased Following FOMC Charge Choice, Powell Presser

Nasdaq 100 Value Forecast:

• The Nasdaq 100 ticked greater following the July FOMC fee resolution as equities look to get pleasure from a continued accommodative backdrop
• Elsewhere, robust expertise earnings have helped justify present valuations
• Market individuals could now flip their focus to the upcoming stream of earnings report for additional affect

Nasdaq 100 Ticks Increased Following FOMC Charge Choice, Powell Presser

The Nasdaq 100 is on tempo to shut Wednesday buying and selling barely greater, regardless of a FOMC occasion that sparked USD energy – usually a sign of a hawkish lean. Whereas preliminary takeaways and worth motion are largely combined, there was little within the assembly or subsequent press convention to recommend the backdrop equities have loved for greater than a 12 months will all of a sudden change for the more severe. That stated, the Nasdaq 100, Dow Jones and S&P 500 could look to proceed their upward climb within the weeks to return.

To that finish, worth motion could get pleasure from progress relative to latest classes now that the most important occasion danger has handed and merchants can look to imminent earnings for future catalysts. Additional nonetheless, latest earnings recommend massive expertise shares may proceed their streak of dominance as Microsoft, Apple and Google revealed exceptional quarterly outcomes after Tuesday commerce.Collectively the continued financial coverage backdrop and powerful earnings equip the Nasdaq 100 with a powerful elementary backing headed into August.

Nasdaq 100 Value Chart: 1 – Hour Time Body (June 2021 – July 2021)

From a technical perspective, preliminary resistance could reside alongside the index’s latest file excessive simply shy of 15,150 the place a group of rising trendlines intersect. Ought to danger urge for food dwindle and worth reverse decrease, early assist could also be derived from the trendline projection rising of the index’s July 19 swing low though the extent has not but been verified.

Nasdaq 100 Value Chart: Every day Time Body (August 2020 – July 2021)

Over the long run, the Nasdaq 100 trades close to the topside of an ascending channel that has helped information the index greater since September and may provide appreciable assist towards the decrease aspect of the vary. That stated, a transfer towards the decrease finish of the channel would represent a big technical improvement and a reassessment of the panorama may be required at such a time. Till such a break happens, nonetheless, the Nasdaq 100 could get pleasure from a modest tailwind within the weeks forward. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX