NASDAQ 100 NEWS AND TECHNICAL ANALYSIS – 08 February 2023
08 Feb 2023
Nasdaq climbs 1.9% after Fed Chair Powell says inflation is declining
Stocks advanced Tuesday following Federal Reserve Chair Jerome Powell’s comments indicating inflation has started easing.
Nasdaq Composite posted the biggest daily gain, climbing 1.9% to end at 12,113.79.
The three major indexes finished Tuesday in the green after bouncing around for much of the day as investors digested comments from Fed Chair Jerome Powell.
The major indexes ricocheted during and shortly after his remarks in a midday conversation at The Economic Club of Washington, D.C. At one point, the Nasdaq Composite traded up more than 1%. Those gains came as investors cheered Powell’s comments on disinflation, hoping they indicated the central bank could continue slowing on its interest rate hike campaign.
“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector,” Powell said. “But it has a long way to go. These are the very early stages of disinflation.”
“The market’s doing the best that it can to try to discount two very different scenarios, both of which are really driven by what the Fed is going to do,” said Dave Greczek, managing director of investment strategy and research at Aspirants. “The scenario is we get a recession or do we not, and it’s highly dependent, in the market’s eyes, on how quickly the Fed nears the end of its rate hike campaign.”
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 up trend.
Nasdaq 100 immediate resistance is at 12816.34 & its immediate support level is 12716.26
HOW TO TRADE NASDAQ 100 IN THIS WEEK
NASDAQ 100 is trading in up channel; it will continue to trade upside until any trend reversal so, remain bullish on it.