The Nasdaq100 Futures (CME: NQ) surged impressively in 2023, showcasing a remarkable 54.45% gain and ascending to unprecedented heights. This meteoric rise was orchestrated by the resurgence of Tech stocks, basking in the spotlight amid a fervent buying spree fuelled by the allure of Artificial Intelligence.
However, this rally wasn’t solely orchestrated by technological advancements. The Futures’ ascent was propelled further by shifting market sentiment, particularly as the Greenback stumbled towards the year’s end. The anticipation of imminent rate cuts, coupled with the Federal Reserve’s dovish inclinations, served as a powerful gust, propelling the Nasdaq100 Futures to new echelons.
This week’s economic calendar in the United States is brimming with high-impact events, each poised to steer the short-term trajectory of these index futures potentially. Among the pivotal events are the eagerly awaited FOMC Minutes, alongside the unveiling of crucial data such as Job Openings and the Nonfarm Payrolls report.
Technical
The Nasdaq100 Futures concluded 2023 with nine consecutive weeks of gains, indicative of a robust bullish trajectory. This upward surge was notably buoyed by the index futures trading persistently above the 100-day moving average, affirming the strength of this prevailing uptrend.
Within this bullish narrative, the 16758.50 level emerged as a pivotal support platform, cushioning a sharp dip and catapulting the index futures to establish an unprecedented all-time high at 17165.25. Yet, as the Futures reached this zenith, the narrative pivoted. The peak transformed into a resistance level as a subsequent pullback unfolded.
Amidst these oscillations, the 50% Fibonacci Retracement level emerged as an intermediary support, tempering the downward momentum of the pullback. Should this level maintain its resilience, paving the way for renewed upside vigour, a retest of the 17165.25 resistance level might unfold, driven by a resurgence in upward momentum. In contrast, if the pullback gains further steam, casting a shadow on the 50% level, attention could pivot to the 61.80% Golden Ratio.
Summary
The Nasdaq100 Futures peaked in 2023, riding a wave of tech-driven fervour and market sentiment favouring risk assets. The 50% Fibonacci Retracement now stands as a key level to monitor amid upcoming economic data.
Sources: Reuters, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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