Nasdaq Gain as Geo-Political Worries Ease

Summary:
• Nasdaq breaks above the 100-day moving average and bulls are trying to get the control. On the upside immediate resistance stands at 7,963 the daily

Nasdaq started higher today adding 0.85% at 7,948 as geopolitical tensions ease. Macro data from China boosted investors sentiment as Caixin Services PMI rose from previous 51.6 to 52.1 in August.

The Dow Jones Industrial Average is 0.81% higher at 26,330, while the S&P 500 trading 0.89% higher at 2,931.96. United States Redbook Index (year over year) climbed from previous 5.7% to 6.5% on August 30, the monthly reading for Redbook Index came in at -1% on August 30, from previous -1.4%. The US Trade Balance registered at $-54B, below forecasts of $-53.5B in July. ISM-NY Business Conditions Index climbed from previous 43.5 to 50.3 in August. In Canada the Labor Productivity (quarter over quarter ) registered at 0.2%, below forecasts of 0.3% in 2Q, 2019. The International Merchandise Trade registered at $-1.12B, below expectations of $-0.4B in July. Crude oil prices, Canada main export product, jumped 3.60% higher at $55.88 per barrel.

The CBOE Volatility Index (VIX) gives up 8.14% today at 18.08 to confirm the risk-off market mood.

Nasdaq getting a boost from Opgen +69.63%, Top Ships +22.37%, Mereo +24.56 and Gevo +14.98%. On the other hand Nasdaq dragged down by USA Technologies -17.73 and Vera Bradley -15.66.

Nasdaq breaks above the 100-day moving average and bulls are trying to get the control. On the upside immediate resistance stands at 7,963 the daily high and then at 8,043 the 200-day moving average. On the downside immediate support stands at 7,928 today’s low, while more bids will emerge at 7,812 the low band of the ascending channel. Traders looking to enter long positions can buy if the index manages to close above today’s high, targeting a break above 8,000 mark for profits, and can keep their long positions as far the index is trading above the 7,900 mark. A short position might be initiated if the index breaks below the 100 day moving average at 7,953. The technical analysis suggests a near-term “neutral” to bullish outlook for Nasdaq.

The European Indices trading higher, the FTSE 100 is 0.60 percent higher at 7,312 as the pound trades at 1.2183. DAX 30 is 0.94 percent higher at 12,023 while CAC 40 in Paris is 1.21 percent higher at 5,532.