- Summary:
- Nasdaq 100 reacts negatively to the Moderna positive vaccine news. However, the price action remains constructive and a new attempt higher is possible.
The stock market is on fire again as Moderna announces an even more efficient vaccine against COVID-19. Consequently, the Dow Jones jumped above the 30k level, but the Nasdaq 100 is not celebrating the news as value stocks do.
The reason for the reluctance in the Nasdaq 100 index is that the investors may choose to rotate out of growth stocks and into value now that the prospect of life coming back to normal is reachable sooner rather than later. Therefore, the market participants decided to take profits on the tech stocks and rebalancing their portfolios.
Because of that, Nasdaq 100 did not celebrate the news as other indices did. However, it hovers around all-time highs and it may just consolidate for a while before jumping higher.
Moderna Reports 95% Efficiency for Its COVID-19 Vaccine
Another Monday, another vaccine news creates volatility on the international financial markets. This time it is Moderna, a US-based pharmaceutical company that announced an efficiency of over 94.5% of its COVID-19 vaccine. Early data suggests another positive news from science, a much-needed one considering the rate of infections in the Western world. Over the weekend, the United States reported over 150,000 new cases of COVID-19 cases, a staggering number by all counts.
It remains to be seen what the impact of the Moderna report will be on the markets. So far, one major difference between the Moderna and the Pfizer vaccines seems to be the temperature – the Moderna vaccine is stable for 30 days at refrigerator temperature, while the Pfizer vaccine needs much lower ones. Therefore, a slightly different cost structure for worldwide manufacturing and handling procedures.
Nasdaq 100 Technical Analysis
The big question for Nasdaq 100 bulls is if the market has formed a double top at the 12,400 level. If it did, then bears will look to sell on an invalidation of the higher lows series.
However, if it did not, then the next level to watch is a new all-time high. As such, bulls may want to go long on expectations that the index will threatens the highs. For this, a stop loss order at 11,500 is needed.
Nasdaq 100 Price Forecast
