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Mastercard’s shares decline despite upbeat results
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How should you play the NASDAQ 100’s moment of truth?
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Trends & Analysis
News
Mastercard’s shares decline despite upbeat results
News
Tesla’s stock surges after upbeat Q4 print
News
Investors unimpressed by Microsoft’s earnings beat
News
How should you play the NASDAQ 100’s moment of truth?
News
Baker Hughes shares decline amid weak Q4 print
News
Alphabet shares surge after layoff announcement

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Asset Watch

How should you play the NASDAQ 100’s moment of truth?

 

Tuesday, January 24, 2023, 11:30am  GMT

As recession fears spread and volatility is amplified, the anxiety has led traders to price in a lower peak U.S. federal funds rate (FFR). However, on Jan. 19, JPMorgan CEO Jamie Dimon said, “I actually think rates are probably going to go higher than 5%… because I think there’s a lot of underlying inflation, which won’t go away so quick.”
He added:
“We’ve had the benefit of China slowing down, the benefit of oil prices dropping a little bit. I think oil & gas prices probably go up the next 10 years… [China’s reopening] isn’t going to be deflationary.”
While the NASDAQ 100 benefits from lower interest rates, a major move in either direction could be on the horizon.

Source: TradingView

With the index sandwiched between weekly support and resistance, there isn’t much wiggle room in either direction. On the one hand, it closed above the 20-week moving average on Jan. 20, and the MA has largely marked support and resistance since May 2020 (outside of the bear market rally in August 2022).

On the other hand, the grey arrows show how overshoots of the 20-week MA have ended at the declining resistance line. And with the next milestone at roughly 11,800, the potential upside is limited.

As a result, with 20-week MA support near 11,400 and trendline resistance near 11,800, the Jan. 20 close of 11,619 signals that a breakout or breakdown could happen within days.

So, which is more likely?

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