Nasdaq (NDX NQ1 QQQ) breaks records as Fed threads a careful line, risk-reward still upside bound


  • Nasdaq outperforms all and sets new record high on Thursday.
  • Relief rally as Fed is seen to be in control of inflation with rate hikes brought forward.
  • Big-tech FAANG stocks get ready for big moves.

The relief rally continued on Thursday for the Nasdaq as the index outperformed all others and set a new record high on the day. The Fed has calmed investor fears over runaway inflation by bringing forward its rate hike predictions to 2023. Not only has this calmed investors but the 10-year yield remained barely unmoved despite talk of tapering and rate hikes in 2023. 

Big-tech stocks made some strong moves on Thursday with Apple (AAPL) finally breaking out and Facebook (FB) closing near the high of the day and just below its record high. 

Nasdaq technical analysis

Taking a close look at recent price action using the 30-minute chart for the Nasdaq futures (NQ1) shows just how much volume printed toward the high of Thursday's session. The point of control was at the near high of the day. 

From the daily chart, we can see the strong ascending channel which has been holding the move nicely. The break of 14,053 was the key to further gains and then Thursday's record. Holding above this level keeps the short-term trend bullish with 13,462 and 12,950 the medium-term and longer-term pivots for bulls. 

In terms of metric, bulls continue to have the upper hand. Across the Nasdaq, 49 stocks made new 52-week highs as against 28 making new 52-week lows while 74% of Nasdaq stocks are trading above their 100-day moving average.

The risk-reward is to the upside, trading above the 9-day moving average, strong ascending channel, intraday point of control (max volume price) near the high of the day.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds steady above 1.1750 amid worsening mood

EUR/USD is off the highs, holding steady above 1.1750 amid a worsening market mood, courtesy of the falling Chinese stocks. The pair opened higher and moved in a narrow trade band with 15 pips movement, with all eyes on the FOMC this week. 

EUR/USD News

GBP/USD: Demand for the pound is still partial

The GBP/USD pair ended Friday and the week unchanged around 1.3750, after bottoming on Tuesday at 1.3571, its lowest in five months. Brexit and the pandemic keep limiting demand for the pound. GBP/USD is losing bullish strength, but there are no signs of an upcoming slide.

GBP/USD News

Gold bounces back above $1800 amid retreating Treasury yields

Gold price is reversing a dip below $1800 so far this Monday’s Asian trading, as the US Treasury yields retreat heading into the FOMC week. The market sentiment is cautious, as investors gear up for a busy week. The S&P 500 futures drop 0.25%. 

Gold News

EUR/USD holds steady above 1.1750 amid worsening mood

EUR/USD is off the highs, holding steady above 1.1750 amid a worsening market mood, courtesy of the falling Chinese stocks. The pair opened higher and moved in a narrow trade band with 15 pips movement, with all eyes on the FOMC this week. 

EUR/USD News

Chart of the Week: Commodity-FX in focus, bears in control

With the Federal Open Market Committee and headlines regarding the Delta variant, the week ahead will be an important one from both a fundamental and technical perspective. AUD/USD bears seeking a break of meanwhile support. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures