Nasdaq
Investors on the Nasdaq 100 appear to have been spooked by this month’s US Consumer Confidence data. The US Conference Board is reporting that the consumer confidence in the US fell to 86.9, representing a further deterioration in the index after March’s steep decline to 118.8.
A notable takeaway from the report was the 90-point drop in the Present Situation Index, which is the largest this metric has ever dropped in the history of the Consumer Confidence data. It is a reflection of the severe hit that the US economy has taken due to the coronavirus pandemic, with surging unemployment and a sharp rise in initial jobless claims in April.
While consumers were generally optimistic about a turnaround in the labour market, they are less so about their financial situation. This, according to the US Conference Board, may impact consumer spending going forward.
The Nasdaq 100 index is down 1.03% at the moment, trading at 8746.0.
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The Nasdaq 100 failed to break the resistance at 8945.7 and at the moment, the failed break is prompting a pullback that seems bent on retesting the 8691.0 support level. This latest price move reflects what my analyses of this index asset have been in the last one week. Price action on the Nasdaq 100 is showing reluctance to go above 8945.7, as well as inability to breakdown 8442.5, making these price levels the boundaries of the trading range of the last week.
If price continues downwards and can breakdown 8691.0, then a move for 8442.5 cannot be ruled out and will be in tandem with the consolidation pattern seen. A downside break of 8442.5 stalls the recovery of the index and brings in 8160.2 and 8015.5 as likely downside targets.
On the flip side, a bounce at 8691.0 allows the Nasdaq 100 to re-target the 8945.7 resistance. Only a break of this resistance would bring in 9092.3, 9167.4 and 9264.4 into focus, as the price aims to complete the crab version of the harmonic pattern.