Nasdaq finds support from 200 MA - for now
Financial markets are significantly more stable today. Major indices have rebounded, with all posting gains, especially the Japanese Nikkei, thanks to reassuring remarks from the Deputy Governor of the Bank of Japan yesterday. This optimism has spread across global equity markets, Bitcoin, and metal prices. Furthermore, better-than-anticipated US jobless claims data has eased concerns about a potential economic slowdown in the US. This comes on the heels of a strong ISM services PMI report on Monday, which has offset some of the weaker economic signals from last week.
The Nasdaq 100 has for now stabilised around its 200-day average. But we need to see some more bullish price action to provide a stronger bullish signal. For example, a move above the 18,460 - 18,700 area could further reduce the bears' control. However, if instead the 200 MA breaks on a closing basis, then that could pave the way for fresh selling activity. So we are not out of the woods yet, but today's price action has certainly been constructive if it can be sustained into the close.
By Fawad Razaqzada, market analyst at FOREX.com
The Nasdaq 100 has for now stabilised around its 200-day average. But we need to see some more bullish price action to provide a stronger bullish signal. For example, a move above the 18,460 - 18,700 area could further reduce the bears' control. However, if instead the 200 MA breaks on a closing basis, then that could pave the way for fresh selling activity. So we are not out of the woods yet, but today's price action has certainly been constructive if it can be sustained into the close.
By Fawad Razaqzada, market analyst at FOREX.com
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