Nasdaq Starts Lower on Soft ISM Services, Strong Bids at 7,700

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Written By: Nikolas Papas
Reviewed By: Alejandro Zambrano
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    Summary:
  • Nasdaq started 1.00% lower at 7,707 continuing the heavy sell-off which started yesterday driven by the combination of poor macro data,

Nasdaq started 0.40% lower at 7,757 continuing the heavy sell-off which started yesterday driven by the combination of poor macro data, Brexit developments, and news that the USA would be introducing $7.5bn worth of tariffs on European imports.

On the macro data front another disappointment came from the ISM Non-Manufacturing PMI which came in at 52.6, below market expectations of 55 in September, and the United States Initial Jobless Claims came in at 219K, above expectations of 215K on September 27th

Earlier today European Services and Composite PMIs came in below expectations. Eurozone Retail Sales came in-line with expectations.

Investors now increasing their bets for a cut by Fed later this month, which will be supportive to stocks.

The Dow Jones Industrial Average started 1.13% lower at 25,784, while the S&P 500 trading 0.92% lower at 2,862. The CBOE Volatility Index (VIX) adds 2.97% today at 21.17 to confirm the nervous market mood.

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Nasdaq Technical Analysis

Nasdaq 100 lost its bullish momentum as the index trades outside and below the ascending trend channel which started early 2019. On the downside, immediate support stands at 7,700, today’s low, then at 7,664, the low from August 5th, while more bids will emerge at the 7,300 low from May. I think bearish traders will short if the index settles below the 200-day moving average at 7,713.

On the upside, immediate resistance stands at 7,801 the daily high and then at 7,961, the 100-day moving average. Traders looking to enter long positions will probably buy if the index manages to close above today’s high of 7,801, targeting the 8,100 level.

In Europe equity indices trading lower, the FTSE 100 is 1.46 percent lower at 7,018 as the pound trades at 1.24. CAC 40 in Paris is 0.32 per cent lower at 5,407.

Written By: Nikolas Papas
Reviewed By: Alejandro Zambrano

Technical analyst of forex, stock market indices and commoditiesTechnical analyst of forex, stock market indices and commodities Skills: Technical Analysis · forex · Stocks · Crypto · Writing

Published by
Written By: Nikolas Papas
Reviewed By: Alejandro Zambrano