Nasdaq analysis
- Tech stocks continue their upward momentum ahead of Tesla and Netflix earnings
- Nasdaq Close To All-Time High At 16,767 – Could Technical EPS Beats Provide The Catalyst?
- The analysis in this article is used chart patterns and key Support and resistance levels. For more information visit our comprehensive website Educational library
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Tech stocks continue bullish momentum ahead of Tesla, Netflix earnings
The Nasdaq index extended its recent rally, helped largely by positive earnings from major US banks. Banks with the exception of Goldman Sachs and Citi beat earnings per share estimates as US interest rates continued to rise. Big banks usually see an increase in net interest income during rate hike cycles, but when rates become too constrained, customers are more likely to default on their loans.
The recent advance in core inflation has also played to the upside, adding more fuel to the fire. Signs of declining inflation have accumulated in the US, adding less pressure on the Fed to raise aggressively.
The Nasdaq is close to testing an all-time high
The NASDAQ weekly chart shows an uptrend touching the upper side of an ascending channel that has contained price action since the start of the major move higher at the end of last year. There is a reasonable distance from current levels to a retest if all time high but at the current rate the bullish level of 16767 could be very close.
Nasdaq (E-Mini Futures) weekly chart
Source: TradingView, prepared by Richard Snow
Next on the earnings schedule is the quarterly reports from Tesla and Netflix which are due after the market closes today.
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The daily chart helps assess the massive momentum behind the bullish move, which is characterized by a distinct lack of counter-trend bounces. Recently, the prices gathered 15,260 before the current advance took hold. Crossing through 15,710 with ease, the index now has an all-time high within striking distance – if positive earnings reports can provide the catalyst.
Nasdaq Daily Chart (E-Mini Futures)
Source: TradingView, prepared by Richard Snow
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– Posted by Richard Snow for DailyFX.com
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