After two consecutive weeks of relatively thin trading conditions and apparent lack of volatility, equity futures across the US have managed to make headway this week and rally higher, as the resolution (temporary?) of the conflict between Israel-Iran tamed fears, and nudged investors to return to their default, risk-off approach.
Outflows from safe haven assets such as gold and the greenback have been observed and the rise of all three major stock market indices, namely the Nasdaq, the S&P500 and Dow Jones towards higher ground, highlights yet again the insatiable desire of investors for riskier assets.
Fed Chair Powell’s testimony before Congress may have aided investors’ sentiment slightly, since the head of the central bank reaffirmed that policymakers are open to the possibility of reducing rates later this year, should data on the inflationary front prove to be non-threatening. Friday’s Core PCE release will thus be the main focus of traders this week, awaiting patiently to see whether price pressures will record another desirable fall or showcase signs of reacceleration from Trump’s tariff policies.
Having said that however, we have to point out the fact that the tech heavy Nasdaq 100, a long-term favorite choice for investors, is on the brink of breaking into uncharted territory in today’s session and definitively mark the return of the index into bull market territory, unlike its peer, Dow Jones 30, which has yet failed to receive, equally potent inflows from investors.
Technical Analysis
NASDAQ Chart – The tech-heavy equity index, Nasdaq100, gears up to challenge February’s historic peak
Resistance: 22235 (R1), 23500 (R2), 24600 (R3)
Support: 20800 (S1), 19300 (S2), 18200 (S3)