- Summary:
- Positive news from a coronavirus drug trial and upbeat US retail sales data sends the Nasdaq 100 futures soaring this Tuesday.
Strong US Retail Sales numbers are sending the Nasdaq 100 futures soaring this Tuesday. Data released by the US Census Bureau a few minutes ago showed that the US Retail Sales and Core Retail Sales increased by 17.7% and 12.4% respectively, which was much higher than the 7.9% and 5.5% that analysts had predicted for each data piece respectively.
The figures also represented an overwhelming improvement over last month’s figures of -14.7% and -15.2% for the US Retail Sales and US Core Retail Sales numbers. These data show that the retail sector, one of the hardest-hit areas in the US by the coronavirus pandemic, may have started to show signs of recovery. Consequently, the Nasdaq 100 futures saw a spike that has sent it to the 9990.8 mark, representing a 1.82% increase on the day.
Also boosting the US markets is news just released from the RECOVERY clinical trial of the steroid drug Dexamethasone. Data show that deaths due to severe coronavirus have been cut by a third.
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Outlook for Nasdaq 100
Today’s price surge marks a further extension of the strong start to the week posted by the Nasdaq 100. Price is now well on its way to challenging the psychological resistance at 10,000. Beyond this level, the all-time highs of 10156.0 remain relevant to upside price action. A breach of this level sets a new record, following which 10,291.5 (227.2% Fibonacci extension from the XA wave of the invalidated harmonic crab pattern) becomes the next target.
On the flip side, a rejection at the all-time highs could provide for a retest of 9730.2 (highs of 20 February and 4 June 2020), with 9626.4 and 9452.0 coming in as the next support targets. Only a breakdown of the ascending channel allows 9264.4 and 9167.4 to become available as new support targets.