Nasdaq 100 Plunges and Threatens to End Uptrend

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Written By: Alejandro Zambrano

Dec 03, 2019, 13:45 GMT 13:45

nasdaq

Summary:

The Nasdaq 100 is under pressure as yesterday’s sell-off on the heels of a softer than expected US ISM report extends for another day.

The Nasdaq 100 is under pressure as yesterday’s sell-off on the heels of a softer than expected US ISM report extends for another day. Also, driving the Nasdaq 100 lowers are signs that a trade deal between the US and China might not come into fruition until after the 2020 US presidential election.

To further provoke selling of the Nasdaq 100, the US government looks ready to impose sanctions on France after they added a digital tax on large online services companies like Google. The French say that the purpose of the new digital tax is to make sure that multinational firms pay their fair share of tax on revenues generated by French consumers.

Nasdaq 100 Technical outlook

The index is marching straight towards the November 11 low of 8195, which also happens to be the trend-defining low. A break to this level would undo the last few weeks upward trend and could send price to the next important key level, the July 2019 high of 8034. However, if the index manages to remain above the low, the trend will remain upwards and the price might revisit its 2019 high of 8451.

Written By: Alejandro Zambrano

Alejandro Zambrano combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing. Zambrano was the Chief Market Strategist of the FCA regulated broker, Amana Capital. Prior to that, he was also the Head Analyst at FXCM’s London research desk. Interact with Alex via Twitter at @AlexFX00.