NASDAQ Price Analysis – March 10, 2023

Daily Price Outlook

The Nasdaq 100 (NDX) is trading at 11,995.88, experiencing a 1.80% decline in the last 24 hours. This drop comes after investors closely watched the weekly unemployment statistics before releasing crucial job reports, causing a decline in US stocks.

Fed rate hikes and Biden’s Buyback Tax Plan

The weekly report on Initial Jobless Claims revealed 211,000 individuals applied for jobless benefits in a week, higher than the expected average of 195,000. This indicates that rising interest rates are causing pressure on the employment market. As a result, traders are now pricing in a higher likelihood of a 50 bps lift-off at the upcoming FOMC meeting on March 21-22.

Ahead of the release of the much-awaited February jobs report (NFP report) from the United States, traders have migrated to the sidelines, causing the yield on the US 10-Year Treasury to drop to 3.847%. Meanwhile, the US Dollar Index (DXY) is now hovering around 105.20.

Furthermore, traders are concerned about President Biden's proposal to quadruple a 1% stock buyback tax and recession fears. Buybacks are a crucial tool for giving investors their money back. If this policy is adopted, it could act as a long-term adverse trigger for stocks.

NASDAQ 100 Top gainers and losers

The best-performing shares in the Nasdaq 100 index during Friday's opening trade were those of Intel Holdings, with a 1.77% increase. On the other hand, Walgreens Boots Alliance had the worst performance, down 3.45%.

Looking at the year-to-date results, Walgreens Boots Alliance is down approximately 24.56%. Two other stocks on the move are Warner Bros. Discovery, down 3.7%, and PayPal, up 0.12%.

NASDAQ Intraday Technical Levels

Support      Resistance

12133          12267

12051          12319

11999          12401

Pivot Points:12185

NASDAQ – Technical Outlook

Technically, the NASDAQ is currently in a bearish trend, having broken through the support area of $12,100 and is now headed towards the next support level of $11,900.

Further down, the immediate support for NASDAQ is at $11,850, and a break below this level could expose the index to the next support area of $11,600.

The MACD and RSI indicators are both in the selling zone, indicating a strong bearish bias in the market. However, on the upside, if the NASDAQ manages to cross over the $12,100 level, it could potentially reach the $12,400 or $12,600 mark.