Nasdaq 100: Market Optimism Builds Ahead of Big Tech Earnings

The earnings season is gaining momentum. This week, major technology companies such as Alphabet (GOOGL) and Tesla (TSLA) are scheduled to release their quarterly results.

Given that 85% of the 53 S&P 500 companies that have already reported have exceeded analysts’ expectations, it is reasonable to assume that market participants are also anticipating strong results from the big tech names. The Nasdaq 100 index (US Tech 100 mini on FXOpen) set an all-time high last week — a level that may be surpassed (potentially more than once) before the end of August.

Technical Analysis of the Nasdaq 100 Chart (US Tech 100 mini on FXOpen)

Price movements have formed an upward channel (marked in blue), with the following dynamics observed:

→ The bearish signals we highlighted on 7 July did not result in any significant correction. This may be interpreted as a sign of a strong market, as bearish momentum failed to materialise despite favourable technical conditions.

→ Buyers have shown initiative by gaining control at higher price levels (as indicated by the arrows): the resistance at 22,900 has been invalidated, while the 23,050 level has flipped to become support.

→ A long lower shadow near the bottom boundary of the channel (circled on the chart) underscores aggressive buying activity.

Should the earnings and forward guidance from major tech firms also come in strong, this could further reinforce the sustainable bullish trend in the US equity market.

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