NASDAQ Analysis: New Top of the Year


For the first time in 2023, the index of technology stocks exceeded the level of 16,000.

The rally comes amid news surrounding Sam Altman, the now former head of OpenAI, the company behind ChatGPT and other groundbreaking products. If you don't know:
→ Sam Altman, co-founder and former CEO of OpenAI, was fired from his position on November 18, 2023. The company's board of directors said Altman was not forthcoming in his interactions with the board, which interfered with his ability to perform his duties.
→ Following Altman's resignation, several senior OpenAI employees also announced their departure. Altman himself stated that he did not agree with the decision of the board of directors and considered it unfounded.
→ Microsoft, which invested $14 billion in OpenAI earlier this year, was also outraged. Moreover, it rushed... to hire Sam Altman. He is now the head of Microsoft's AI division.
→ OpenAI employees consider the board of directors incompetent and ask to return Altman, or they may themselves leave for Microsoft.

Although the conflict situation may interfere with the development of projects, perhaps market participants believed that in this case Microsoft and AI technologies will receive more long-term benefits — shares of MSFT and NVDA also reached highs yesterday.

In addition, Fed policy has an important impact on market sentiment. It is not expected to raise rates again, so investors are actively exiting the cash — and the fact that the NASDAQ is performing stronger than the S&P 500 indicates that technology stocks are among the desired buys.

The NASDAQ 100 chart shows the bulls losing momentum:
→ MACD forms potential divergence;
→ price dynamics in the evening of November 20 and the morning of November 21 form a rounding, which can be interpreted as a weakening of bulls’ confidence before the FOMC meeting, which will take place today at 22:00 GMT+3.

It is possible that there will be a surge in volatility, in which the NASDAQ price will test the strength of the support at 15,750.

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