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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The future implications of the #Elections2020 may influence $AUDUSD following the #RBA and #Fed rate decisions as Congress struggles to pass another round of fiscal stimulus. Get your #currencies update from @DavidJSong here: https://t.co/soPu0Wefz2 https://t.co/UWsERr2AYh
  • Gold prices declined in the aftermath of bearish technical cues, but a key zone of support was reinforced. $XAUUSD volatility risk is elevated ahead of the #Elections2020. Get your #metals update from @ddubrovskyFX here: https://t.co/gWOxdqk8OL https://t.co/gBMgF0YNjH
  • USD awakens, placing GBP/USD on the backfoot, while EUR/GBP cracks 0.90. Get your #currencies update from @JMcQueenFX here: https://t.co/fndMQJLul8 https://t.co/elz5gNAKrB
  • What are some factors impacting Euro’s forecast this quarter? Get your free forecast here: https://t.co/kpBYVz31Bd https://t.co/7EzMPg9Kqg
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/DjMdgL5x19
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/6sqqRfTri2
  • The British Pound, Australian Dollar and US Dollar may all experienced heightened periods of volatility as geopolitical risks in North America, Asia and Europe rattle global financial markets. Get your $GBPUSD market update from @ZabelinDimitri here:https://t.co/0EFToM5Y8I https://t.co/5gsZQfX6aG
  • The New Zealand Dollar may continue to outperform the haven-associated US Dollar as price breaks above key long-term resistance. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/D1DxtDkJXd https://t.co/DwkK9F9FCJ
  • #Gold prices declined following bearish technical cues, but a key zone of support was reinforced over the past 48 hours. #XAUUSD volatility risk is elevated ahead of the #USElection - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/30/Gold-Technical-Forecast-Election-Raises-Volatility-Risk-But-Support-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/5hgGEojvIE
  • What is the US Dollar outlook based on retail positioning ahead of the November 3rd presidential election? EUR/USD may fall as AUD/USD rises. Which way could USD/CAD capitulate? Find out from @ddubrovskyFX here:https://t.co/BVoIcR9anM https://t.co/Frmn9y6yKJ
Nasdaq 100 Breaches 10,000 for the First Time Ever, Bulls Rejoice

Nasdaq 100 Breaches 10,000 for the First Time Ever, Bulls Rejoice

2020-06-09 20:00:00
Peter Hanks, Analyst
Share:

Nasdaq 100 Price Forecast:

  • The Nasdaq breached the psychologically significant 10,000 mark for the first time ever on Tuesday
  • Bulls rejoiced at the significant achievement, but much uncertainty remains
  • First and foremost is the upcoming FOMC rate decision which has the ability to fuel or furlough the rally

Nasdaq 100 Breaches 10,000 for the First Time Ever, Bulls Rejoice

The Nasdaq 100 scored an incredible achievement on Tuesday as it crossed the 10,000 mark for the first time in history. While the remarkable recovery has seen the Nasdaq reach new heights, the S&P 500 and Dow Jones – along with other global equity markets like the DAX 30 and FTSE 100 – remain beneath their covid-19 peaks. In turn, we can look to the stellar performance of large cap technology stocks like Microsoft, Facebook, Google, Apple and Amazon, all of which possess significant influence on the Nasdaq, as key drivers of the recovery rally.

Nasdaq 100 Price Chart: 4 – Hour Time Frame (February – May)

Nasdaq 100 price chart

But even these innovators and industry leaders have a basis in the underlying economy which remains fragile. Thus, many market participants have called the current recovery overbought and indeed, symptoms of euphoria are widespread as shares of companies that have gone bankrupt (Hertz) surge to deliver massive gains to those willing to weather the risk.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

Elsewhere, companies with few products or name recognition (Nikola) have surpassed the market capitalizations of household names like Ford and General Motors. All in all, it is becoming more difficult to refute the claim that a detachment from fundamental economics has occurred – at least to some degree.

S&P 500 in Red Overlaid with Money Supply (M1) in Blue

S&P 500 price chart

Chart created with TradingView

Detractors would say the rally is being fueled by an economic recovery and, possibly above all, the Federal Reserve. With the onset of coronavirus and quarantine, the central bank expanded its balance sheet at a blistering pace and the supply of money in the United States has surged in a manner similar to that of the Nasdaq 100, Dow Jones and S&P 500.

This relationship, whether directly correlated or not, has caught the eye of many and in turn, has become a crucial aspect of the rally in my opinion. Therefore, it is almost poetic that the day before the June FOMC rate decision, the Nasdaq reaches a massive psychological milestone because the central bank has the potential to add more fuel to the recovery or pull the rug out from underneath.

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

To be sure, the fate of the recovery could rest in the hands of the Fed. If the central bank should announce a policy plan that will halt balance sheet growth or begin to wind down its expansion, risk appetite should take a hit as investors begin to forecast a relatively more restrictive monetary policy regime.

Will the Fed Go Negative in June?

On the other hand, measures that would expand the balance sheet further may only fuel another leg higher, but run the risk of inflating asset valuations. Either way, the Nasdaq, S&P 500 and Dow Jones will closely watch Wednesday’s meeting and the takeaways could make or break market sentiment. In the meantime, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, 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