Market Review – Nasdaq 100
The S&P 500 Index (SPX) closed up yesterday +0.75%, the Dow Jones Industrials Index ($DOWI) closed up +0.68%, and the Nasdaq 100 Index (NDX) closed up +1.21%.
Yesterday, we saw U.S. stock indexes pushed higher with the S&P 500 and Nasdaq 100 setting a new record highs, pushed by improved chances for a U.S./China trade deal, following better Trade prospects after China on Sunday said it will raise the penalties on violations of intellectual property rights in an attempt to appease U.S. demands in trade negotiations.
Looking at the NDX technical price chart, we can see that recent price trend showing number of positive technical elements in the chart. First, in August- September, we have seen the 200 day moving average starting to shape up (see chart below) which creates stronger long term price momentum on the way up. Second, NDX chart has created series higher low support levels on the way up, which provides better support and better risk management for long traders. Lastly, following the break into all time highs, we can see that NDX still trading far from the upward channel resistance; this should provide long traders price objective north of the 8,500 level