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Nasdaq 100 Retreat, Coronavirus Outbreak Weigh On Stocks

nasdaq 100
nasdaq 100

Nasdaq 100 started the session lower as investors keep an eye on the corporate earnings reports that are supportive for the index. Markets are nervous trying to asses what will be the impact of the   coronavirus spread around the world. China officials decided to lockdown most transport in Wuhan and Huanggang. China People’s Daily have confirmed 639 coronavirus cases.

The United States Initial Jobless Claims came in at 211,000 below the forecasts of 215,000 on January 17. The Jobless claims continue to outline a healthy jobs market.  The Continuing Jobless Claims came in at 1.731.000 also below the estimates of 1.746.000 on January 10. While the Kansas Fed Manufacturing Activity came in at -4 topping expectations of -6 in January.

Read our Best Trading Ideas for 2020.

Nasdaq 100 Index Technical Analysis

Nasdaq 100 trades 0.21% lower at 9,364 as investors take some profits off the table. Investors are still in “buy the dip” mood and all the pullbacks considered a buying opportunity. Let’s see if that will be the case also today.

On the downside, immediate support for Nasdaq index will be met at 9,334 today’s low. Next critical support area stands at 9230 the low from January 15th.  More offers might emerge at 9,157 the low from January 10th.

On the other side, immediate resistance for the Nasdaq index stands at 9,389 the daily high. The record high from yesterday at 9439 is a strong supply zone. Next resistance level to the upside for bulls to watch is the 9,500 psychological figure.