- Summary:
- Nasdaq 100 is trading lower in Monday's session as analysts and investors assess the size and impact of the Archegos-linked block trade.
Nasdaq 100 is down by 0.43% at 12,919 after Archegos Capital Management LLC’s margin call on Friday last week. The over-leveraged fund saw some of its trades make hefty losses, a situation that has impacted its prime brokers. Some of the affected investment banks include Credit Suisse, whose stocks dropped by 10% on Monday. At the same time, Nomura’s shares have fallen by 16% after flagging a probable loss of $2 billion.
The resultant block-trade has pushed the stocks of Tencent Music and ViacomCBS lower by 1.28% and 27.31% respectively. Discovery Communications’ shares have also slid by 29.55%. However, the market chaos may be temporary as investors and analysts alike assess the impact and size of the sell-off.
NASDAQ 100 Technical Outlook
On a 2-hour chart, Nasdaq 100 is trading along the 50-day exponential moving average and slightly below the long-term 200-day EMA. In today’s session, the index is likely to find resistance at the psychological level of 13,000. A move past that point will see the bears test 13,170 and the upper level of 13,300.
On the flip side, Nasdaq 100 will find support at around 12,700. If the index moves lower past that point, a downtrend that is likely to last for several sessions will be evident. In that case, the targets to watch out for will be 12,520 and 12,290.
Nasdaq 100 Chart
