Nasdaq 100 Index Reaches 20,000 Points for the First Time

FXOpen

On 30 May, we noted some uncertainty in the price behaviour of the Nasdaq 100 (US Tech 100 mini on FXOpen) near the resistance level of 18,840, as shown by arrow #1.

Following this, the price declined and tested the former resistance at 18,250 (indicated by arrow #2) – the long lower shadow on the candle indicated aggressive demand (more details in the article on the Hammer pattern).

This test gave the bulls confidence to break through the 18,840 resistance.

In June, the price continued to rally within the ascending channel (shown in green), which is part of a larger ascending channel (shown in blue), driven by:
→ prospects for AI implementation;
→ prospects of Fed rate cuts.

Yesterday, the Nasdaq 100 (US Tech 100 mini on FXOpen) rose by approximately 1.2%, reaching the psychological level of 20,000 points. This record was supported by influential analysts raising their forecasts for US stock markets. For example:
→ Goldman Sachs raised the year-end 2024 target for the S&P 500 (US SPX 500 mini on FXOpen) from 5200 to 5600;
→ Evercore ISI increased its forecast for the same index from 4750 to 6000.

Market sentiment was also buoyed by the anticipation of several comments from FOMC members scheduled for this week. These might confirm the Fed's intention to cut rates as early as September this year.

Technical analysis of the Nasdaq 100 (US Tech 100 mini on FXOpen) shows that:
→ The price is in the upper half of the blue channel, with its median line potentially serving as support.
→ The price is near the upper boundary of the green channel, which can be considered resistance. This suggests that the price might retreat from the psychological level of 20k towards the lower boundary of the green channel.

It is possible that the current bullish drivers will remain relevant until September, allowing the Nasdaq 100 (US Tech 100 mini on FXOpen) to continue rising towards the upper boundary of the blue channel.

Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Tesla Report May Strengthen Bullish Sentiment
Shares

Tesla Report May Strengthen Bullish Sentiment

President Joe Biden withdrew his bid for a second term in the White House on Sunday. It's reasonable to assume that the stock market responded optimistically to this news, as US stocks closed higher on Monday, with the S&

Commodities

Analysis of XAU/USD: Gold Price Falls for 4 Consecutive Days

As shown on the XAU/USD chart, Monday, 22 July marked the fourth consecutive day of declining gold prices. The change from the historical peak reached on Wednesday is around -3.5%.

Bearish sentiment is driven by:

→ Market participants' assessment

EUR and GBP Retreat from Key Levels
Forex Analysis

EUR and GBP Retreat from Key Levels

Financial and currency markets are experiencing one shock after another. The steady decline in US inflation, a potential Fed rate cut, and the current US president’s exit from the election race have led to sharp fluctuations in almost all

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.