Was a bear market bounce simply confirmed within the Nasdaq 100 futures?
If the short-term high is in, what might push round equities subsequent and will the NAS100 be headed?
After a quick spherical of bullish vibes it appears to be like just like the bears could also be again in management within the fairness markets and ON danger sentiment.
With none main information headlines to straight spark the flip, the Nasdaq 100 index appears to have made a short-term high because it swung decrease in at this time’s buying and selling session. It’s attainable that at this time’s arguably weaker-than-expected financial updates from the U.S. had merchants feeling that the chance of recession is rising, prompting merchants to get again to promoting danger belongings after final week’s bounce.
Merchants may additionally be making strikes primarily based on technicals as we will see within the 4-hour chart above, sellers took over on the 50% – 61% Fibonacci space, which additionally traces up with the 200 SMA, which tends to function dynamic resistance in downtrends.
This formation of one other decrease “excessive” might additional attract sellers this week into the longer-term downtrend, however earlier than trying to play into the pattern, we’ve acquired main catalysts forward to pay attention to and issue right into a commerce plan.
On Wednesday, the European Central Financial institution is internet hosting a central financial institution discussion board the place we’ll hear from main central financial institution gamers, together with Federal Reserve Chair Powell, Financial institution of England Governor Bailey and ECB President Lagarde. It’s unlikely we’ll any change in rhetoric or stance on their present quantitative tightening plans, however we’ve positively acquired to maintain an ear out as any surprises would possible result in market volatility.
And on Thursday, we’ve acquired the most recent replace from the Federal Reserve’s most well-liked inflation instrument, the U.S. core PCE worth index. Any indicators of inflation slowdown from that information would possible spark an fairness market bounce, whereas a stronger-than-expected quantity might immediate extra weak point within the fairness markets and energy in bond yields. In any case, be sure to preserve your eyes and ears peeled for any headlines that affect danger sentiment!
Lastly on Friday, we’ll get the most recent look on U.S. enterprise sentiment from the ISM Manufacturing PMI survey. This report will give merchants a clearer view on the enterprise cycle, together with employment, costs, new orders, and many others.
With all of those occasions, we should always see a continued choose up in volatility for the Nasdaq 100. And if all of it factors to the present predominant driving theme of recession forward and excessive costs staying put, the percentages rise that there could also be extra ache forward for fairness bulls and a retest of the latest swing lows in Nasdaq 100 round 11,000.
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