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Market Update: NDX100 has resistance come into play?

October 29, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at the NDX100, as for now, a point of resistance looks to have started to set up.

Looking at the Nasdaq, we did see new records hit overnight as the index added 1.39% off the back of continued buyer momentum in US equity markets. The big influence came late in the session as two of the indexes biggest heavyweights disappointed market expectations with weaker earnings, sales and guidance.

Amazon lost more than 4% in extended trading after the company reported weaker-than-expected results for the third quarter and delivered disappointing guidance for the highly important holiday period.

Apple shares fell by 3% in extended trading after the company announced revenue that fell short of Wall Street expectations in its fourth quarter. Apple CEO Tim Cook attributed the revenue miss to larger-than-expected supply constraints. Despite the bad news, Apple’s overall revenue was still up 29% on an annual basis and each of its product categories grew on an annual basis.

These misses looked to have played a part in the NDX100, pulling back from record highs yesterday and closing back below 15,703. You will notice that this level has been holding buyers back since September and, to date, we haven’t seen a close above that level yet! Buyers for now still hold control with price running on the ST uptrend but we now see a squeeze at resistance and it could be a case of break or retreat to see the next move. If we see a retreat we will still look for buyers hold over overall and we will look for new higher lows to show buyers could have regained short term control.

Attention will be on today’s session to see that the next short term move for the NDX100.

US news to come;

11:30 pm Core PCE Price Index.

Saturday Treasury Currency Report tentative release.

NDX100 Daily Chart

All times are AEDT.