Economic data calm rate concerns as Wall Street starts out higher
The major Wall Street indexes started the day higher on Thursday as investors who were concerned about how far the Federal Reserve would raise interest rates to control inflation found solace in the March producer price slowdown and the increase in weekly unemployment claims.
Nasdaq Composite gained 68.09 points
Stocks rose on Thursday after, yet another report indicated that inflation was slowing.
Following the release of the minutes from the March Federal Open Market Committee meeting, traders’ mood changed in the afternoon. The recent banking crisis is anticipated by the Fed to contribute to a little recession later this year.
According to Ed Moya, senior market analyst at Oanda, “Wall Street went from focusing on a mostly cooler-than-expected inflation report to the Fed Minutes that prompted recession worries as further banking turmoil could be right around the corner as bank earnings near.”
The Labour Department said on Thursday that initial claims for the week ending April 8 totaled 239,000. According to economists surveyed by Dow Jones, initial claims would total 235,000.
This is an increase from the 228,000 claims made the week before.
Still, sentiment supports rising markets. As per Investors Intelligence
This week, Investors Intelligence released the results of its most recent survey, which found that “sentiments still allows for higher markets.” Investors Intelligence measures bullish and negative opinions among financial newsletter editors as a contrarian indicator.
At 48.7% as opposed to 48.6% last week, the number of bullish advisors showed little change, and according to II, the danger zone won’t be crossed until it hits 55% or above. Additionally, bulls outperformed bears for a 21st consecutive week, which is “another positive sign.”
NASDAQ 100 TECHNICAL ANALYSIS DAILY CHART:
NASDAQ 100 is currently trading in up channel.
NASDAQ 100 is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting downtrend.
Immediate resistance is at 13069.69 & its immediate support level is 12951.31
HOW TO TRADE NASDAQ 100 IN THIS WEEK
NASDAQ 100 is currently moving up in a channel; it is currently trading at key resistance zone, if it breaks the resistance zone and maintains above it, we may experience an upside.