Jump to content

Nasdaq 100: waiting for the next catalyst


Recommended Posts

Two consecutive dull sessions have done little to key technical indicators, and traders in the recent past have reduced their buy bias.

 

original-size.webpSource: Getty Images

 

Written by: Monte Safieddine | Market analyst, Dubai
 
Publication date: 

Calmer moves, hawkish FOMC member speak, and low-impacting data

Another calm session where there wasn’t as much to process compared to last week’s fundamental items. US sector performance by the close saw slight gains for tech but both communication and consumer discretionary suffer small losses, and in turn, a finish not far off where it started for the tech-heavy Nasdaq 100, failing to match the Dow 30’s recent run of consecutive gains. The positive was a lack of a significant fall for the key index even as Treasury yields finished the session higher, and so too in real terms, with the Federal Reserve’s Collins on needing "more time than previously thought" to bring down inflation and the "slowdown in activity" that'll be "needed to ensure that demand is better aligned with supply”.

Otherwise, little to get excited about in terms of data, with the weekly mortgage applications (MBA) up 2.6% and wholesale inventories as anticipated, down 0.4% for March. Expect a similar theme today with the weekly claims, another Fed member expected to speak, and the 30-year auction after a decent enough 10-year yesterday. It’ll get more interesting tomorrow with a string of members speaking and the preliminary readings out of UoM (University of Michigan) for consumer sentiment and inflation expectations.

Nasdaq technical analysis, overview, strategies, and levels

It’s a tricky situation when it comes to the technical overviews in both daily and weekly time frames for this tech-heavy index; the volatile moves prior giving conformist breakouts the edge, but a struggle as of late, with the moves relatively dull and, at times, lacking a play for contrarians as well. There are a couple of key technical indicators that are bullish, with the price above all its main daily moving averages, but it won’t take much in terms of a pullback to change that narrative due to price-indicator proximity. The remaining key indicators are generally neutral and, in turn, lacking a signal. While the short-term bull channel is seen as a positive, its width means buy strategies can’t be initiated without consideration and, more so, if there’s a move to the lower end of the channel.

 

original-size.webpSource: IG

IG client* and CoT** sentiment for the Nasdaq

As for sentiment, it’s been a story of majority short bias among retail traders since shifting last Thursday from majority buy, as they bought on dips enjoying the short-term recovery. CoT speculators were majority buy a couple weeks back and have also opted to shift, albeit (for now) only to the middle.

 

original-size.webpSource: IG

Nasdaq chart with retail and institutional sentiment

 

original-size.webpSource: IG

  • *The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 6am for the outer circle. Inner circle is from the previous trading day.
  • **CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.

 

 

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • If you've encountered Drift Protocol but couldn't quite comprehend its role in the DeFi realm, this article aims to elucidate the project's mission and its attempts to address major hurdles in the world of decentralized trading and finance. Fundamentally, Drift Protocol is a decentralized exchange (DEX) built on the high-performance Solana blockchain, facilitating transparent, non-custodial trading without any central entities holding custody of your assets. All transactions occur directly peer-to-peer through secure wallet integrations like Phantom, eliminating the necessity to entrust shady centralized exchanges with your hard-earned crypto. However, Drift transcends the boundaries of a conventional DEX. It's an all-encompassing ecosystem encompassing spot trading, perpetuals, borrowing, lending, staking, and liquidity pools – the entire spectrum. Remarkably, they even offer automatic yield on your account holdings, essentially providing free money for your consideration. What truly sets Drift apart is its cutting-edge liquidity solutions. They employ multiple mechanisms such as limit order books, AMMs, and an innovative "Just-In-Time Auction" system that brings in market makers to provide on-demand liquidity for traders. It's akin to having an entire army of liquidity ninjas at your disposal. Their Dynamic AMM is a game-changer as well. Unlike the static liquidity we're accustomed to, it dynamically adjusts and recalibrates the liquidity pools based on real-time trading demand, translating to better capital efficiency and reduced slippage for traders. And let's not overlook the bots! Drift has an integrated bot system that allows you to automate your trades and execute complex strategies far more efficiently than manual execution. With over $340 million in total value locked and nearly $19 billion in traded volume from their 169,000+ users, Drift Protocol is clearly onto something substantial. Moreover, they recently raised $23.5 million in a Series A funding round led by Polychain. Drift Protocol is truly pushing the boundaries of what a DEX can be – aggregating various DeFi services, solving liquidity challenges, and providing traders with professional-grade tools, all while maintaining full decentralization on the Solana blockchain. This project has certainly piqued my interest, and it could be a game-changer for us crypto enthusiasts.
    • Allow me to unveil the revolutionary Lifeform project – a groundbreaking development in the realm of virtual identities and avatars for the web3 world.   At its core lies a mind-bogglingly innovative concept. They've developed a state-of-the-art editor that empowers users to create hyper-realistic 3D virtual human avatars, which can serve as digital identities across the metaverse and web3 applications. Brace yourself for a staggering number – over 10 billion possible combinations of facial features and body details, all powered by the cutting-edge Unreal Engine 5, the very same technology behind blockbuster movies and top-tier video games. Impressive, isn't it? But here's the real kicker – these avatars aren't merely for virtual worlds. With Lifeform's DID solution, you can actually utilize your custom avatar as a login method and verified identity for any decentralized app or metaverse platform. It's an NFT-based digital ID that seamlessly grants you access to the entire web3 ecosystem. Remarkably, as early as March 2023, Lifeform had already become the most widely used dApp on the BNB Chain, boasting over 3 million monthly active users. This rapid adoption is a testament to the virtual identity concept's meteoric rise. On top of that, their AI analyzes user activity across blockchains, providing personalized service recommendations based on your crypto asset management strategies. It's a sleek, all-in-one web3 identity platform like no other. And the surprises don't end there. These avatars aren't limited to the metaverse; you can beam your virtual self into Zoom calls, Google Meet, online conferences – you name it. Your avatar mimics your movements and expressions in real-time, courtesy of their cutting-edge plugin. It's like being a real-life hologram! Lifeform is single-handedly bridging the gap between our physical and digital identities in an incredibly accessible manner. They are undoubtedly the key to onboarding the next billion users into the web3 space. It's a genius concept, if you ask me. You can check out it's token $LIFEFORM on the Bitget exchange as it recently got listed. 
    • Ready to experience the power of the latest Telegram Signal Bot? Explore the exchange BetterTest Event and witness the potential for yourself! Experience firsthand the accuracy and efficiency of a unique signal bot in real-time trading scenarios. Test its capabilities and see how it can enhance your trading experience. Why Participate? - Refine User Experience: Help us improve the product by providing valuable feedback. - Enhance Audience Reach: Leverage your dedicated audience channels more effectively. - Community Management: Intuitively manage your communities and improve follower quality. - Top Channel Management Tool: Collaborate with us to create an industry-leading platform. Will you miss this opportunity to engage with exchange cutting-edge technology and take your trading to the next level?
×
×
  • Create New...
us