News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • With the Presidential Elections around the corner, how is the market volatility? Get your market update for today from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/Qx1nnVIQSg
  • BOC's Macklem says longer-term bond purchases increases monetary stimulus provided per dollar purchased $USDCAD
  • BOC's Macklem says economic setback could tighten financial conditions significantly $USDCAD
  • BOC's Macklem says purchases of longer-term bonds more effective - BBG
  • We are the cusp of a technical correction (-10% from highs) for the Dow
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.18% 🇨🇭CHF: -0.20% 🇬🇧GBP: -0.48% 🇨🇦CAD: -0.96% 🇳🇿NZD: -1.07% 🇦🇺AUD: -1.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/IihtE4FL0A
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -2.73% Wall Street: -2.80% FTSE 100: -3.33% France 40: -4.21% Germany 30: -4.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LdaGMmi2NS
  • With the VIX at 40 and a lot of technical breaks across various indices, it's looking pretty ugly out there today I'll be going live in 15 minutes to talk through some of the most important levels and events. Join here - https://t.co/nTpoA2moq4
  • 🇺🇸 EIA Cushing Crude Oil Stocks Change (23/OCT) Actual: -0.422M Previous: 0.975M https://www.dailyfx.com/economic-calendar#2020-10-28
  • 🇺🇸 EIA Distillate Stocks Change (23/OCT) Actual: -4.491M Expected: -2.065M Previous: -3.832M https://www.dailyfx.com/economic-calendar#2020-10-28
Nasdaq 100, S&P 500 Forecasts: Will the Tumble Continue Despite Apple Earnings, FOMC Meeting?

Nasdaq 100, S&P 500 Forecasts: Will the Tumble Continue Despite Apple Earnings, FOMC Meeting?

2020-01-27 19:35:00
Peter Hanks, Analyst
Share:

Nasdaq 100, S&P 500 Outlooks:

  • The Nasdaq 100 gapped lower on Monday morning as coronavirus fears sparked risk aversion
  • Similarly, the S&P 500 suffered its largest gap lower since May 13
  • Will risk aversion continue or will the upcoming Federal Open Market Committee meeting squash volatility?

Nasdaq 100, S&P 500 Forecasts: Will the Tumble Continue?

The Nasdaq 100 and S&P 500 opened significantly lower on Monday on the back of coronavirus fears as the VIX jumped to its highest level since early October. In turn, haven assets like gold and the US Dollar were materially higher. Since the exact threat the virus poses to both populations and economic productivity is still unknown, the market will likely continue to wrestle with the theme in the days ahead. That being said, investors may shift their immediate focus to the upcoming FOMC meeting on Wednesday which could help stall further volatility for the time being.

Nasdaq 100 Outlook

Given the significance of the Fed’s policy path, specifically the expansion of the balance sheet, some traders may be hesitant to commit to a direction ahead of an event that could potentially uproot the current fundamental backdrop in the United States. Similarly, earnings from AMD and Apple on Tuesday afternoon may morph the role of coronavirus as a headlines concern if the companies forecast an adverse impact on revenue.

Starts in:
Live now:
Nov 04
( 15:11 GMT )
Live coverage of the Fed rate decision
Weekly Stock Market Outlook
Register for webinar
Join now
Webinar has ended

Nasdaq 100 Price Chart: 4 - Hour Time Frame (November 2019 – January 2020)

Nasdaq 100 price chart

In the meantime, the Nasdaq 100 will look to hold above the ascending trendline from early October and the 200-period moving average around 8,900. A break beneath the zone would allow the tech-heavy index to probe lower lows, with possible support around 8,740 to 8,700. For earnings insight and analysis follow @PeterHanksFX on Twitter.

S&P 500 Outlook

While Apple possesses less influence over the S&P 500 than it does the Nasdaq 100, it is still the index’s largest component. Therefore, any transitory risk from the coronavirus cited in Apple’s outlook could seriously dent sentiment and the S&P 500. Tracking the ascending trendline from October, the S&P 500 has less space to work with from a technical perspective than the Nasdaq, so a disappointing report could easily drive the index beneath the area of confluent support.

S&P 500 Price Chart: 4 - Hour Time Frame (October 2019 – January 2020)

S&P 500 price chart

While traders may prefer the relative clarity following a FOMC rate decision, the uptick in volatility and uncertainty has left the two indices vulnerable ahead of the meeting. A further breakdown in risk appetite could see the S&P 500 test support at the January low of 3,180 before retreating further to the 3,150 area and the passing of the FOMC meeting could allow for greater follow-through. With that in mind, it appears the equity market has two critical tests ahead of it in the days ahead.

Equities Forecast
Equities Forecast
Recommended by Peter Hanks
Get Your Free Equities Forecast
Get My Guide

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES