Nasdaq100 Inches Towards Four-Week Winning Run

The Nasdaq100 Futures (CME: NQ) have been riding a wave of optimism, currently enjoying a three-week winning streak and poised for a potential fourth.  

This week, the index futures are trading 77 basis points higher, reflecting market confidence. Boosting this sentiment were remarks from Fed Chair Jerome Powell on Tuesday, indicating no intention of interest rate hikes despite recent inflation concerns. However, a minor dip occurred during the London session as traders eagerly await the U.S. CPI data release.  

Analysts project a slight dip in the inflation rate to 3.4%, which, if realized, could strengthen expectations for a potential rate cut this year, potentially fuelling a stronger rally in the Nasdaq 100 Futures market. This anticipation underscores the delicate balance between inflation data, monetary policy, and market dynamics.  

Technical 

The Nasdaq100 futures have been exhibiting a robust uptrend, supported by technical indicators and market sentiment.  

The rally commenced from a critical support level at 17387.75, formed amidst oversold RSI conditions, ahead of a reversal from the prior downturn. This support effectively halted further downside potential, propelling the futures above the 100-day moving average. 

Currently, the index futures are approaching a significant resistance level at 18518.75, marking a one-month high. This level presents a key obstacle for further upside movement. If bullish momentum persists, a retest of this resistance level is plausible, indicating continued strength in the market. Conversely, if downside pressure reemerges, traders may find interest around the 100-day moving average, serving as a pivotal support level.  

Summary 

As the Nasdaq100 Futures near a potential fourth week of gains, optimism prevails amidst market dynamics. With support at 17387.75 and resistance at 18518.75, traders await CPI data for insights into potential rate cuts, highlighting the connection between economic indicators, policy, and market sentiment. 

Sources: Reuters, TradingView  

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst  

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.