Last week, in an article named, “FxWirePro: NASDAQ100 looks wobbly compared to other U.S. benchmark indices”, available at https://www.econotimes.com/FxWirePro-NASDAQ100-looks-wobbly-compared-to-other-US-benchmark-indices-1166397 we suggested that the selloffs that rattled investors’ nerves in late January and early February, might not be over for European stocks but the story is different for American bourses, which enjoy the support of recently passed tax cuts and reforms.
We added,
“While our forecasting models suggest that the European bourses are likely to decline further, that is not the case for their North American counterparts. The American bourses not only have the support of an accelerating economy but tax cuts and reforms as well. Our forecasting models suggest that both S&P500 and Dow Jones Industrial Average are likely to hit new record highs if the recent support area holds. However, that doesn’t seem to be the case for NASDAQ100, which is looking somewhat wobbly.
NASDAQ, which is trading at 6820 is currently trapped in a Bull/Bear fight. Bulls are looking to push the index to 7150 in the current run, whereas the Bears are looking to push the index towards 5500 area. It could be the rumor that the Trump administration is considering sales taxes for IT companies; it could also be the fact that other countries might take up steps (in terms of taxes) against U.S. technology companies in response to President Trump’s protectionist agenda, which are clouding the bullish outlook for NASDAQ100.”
However, our recent calculations suggest that the Bulls have won the fight in NASDAQ100 and they are looking to push the index to as high as 8200 as long as the support around 6100 area holds. The index (NAS100) is currently trading at 6990 area.
