NASDAQ Price Analysis – March 29, 2023
Daily Price Outlook
The tech-heavy NASDAQ 100 Index (NDX) fell 0.49% at 12,610.57. The NASDAQ is under significant pressure as Treasury rates continue to rise.
Treasury Rates Rise
According to a report released by the Conference Board on Tuesday, confidence in the US economy rose in March despite the unanticipated turmoil in the banking industry. The business group's Consumer Confidence Index increased to 104.2 in March from an earlier upwardly revised reading of 103.4.
The Federal Reserve is under increased pressure because of the surge to avoid price increases. Rising rates make future earnings less attractive, such as those promised by growing corporations. Therefore, traders revised their holdings in Treasuries and helped the front-end selloff as concerns about the possibility of growth in the financial upheaval eased.
The 2-year yield rose to 4.08%. The 10-year yield increased to 3.57%. The dollar strength gauge, the Dollar Index (DXY), increased to 102.57, up 0.14%.
As a result, the NASDAQ retreated as investors concentrated on increasing Treasury rates, which was negative for tech stocks sensitive to yield. On the economic front, traders are anticipating the release of the most recent pending home sales data on Wednesday.
Regulators Facing Questions
Meanwhile, concerns over the crisis have subsided among US regional banks due in part to authorities' attempts to ease the issues. Investors' concern that increased rates may cause the economy to enter a recession resurfaced.
However, after a contentious hearing on Tuesday before the Senate Banking Committee, bank stocks declined, exerting pressure on NASDAQ. The three leading regulators supported stricter regulations for banks with over $100 billion in assets.
Moreover, Michael Barr, the Vice Chair of Supervision at the Federal Reserve, will speak in front of the House Financial Services Committee in Washington on Wednesday morning. The hearing's topic will be how federal regulators have responded to previous bank collapses.
NASDAQ Intraday Technical Levels
Support Resistance
12601 12792
12530 12911
12411 12982
Pivot Point: 12720
NASDAQ – Technical Outlook
The leading stock market index, NASDAQ, is trading with a bullish bias around the 12,683 level. The NASDAQ index has gained immediate support at the 12,500 level, which has been extended by an upward trend line. Closing a bullish engulfing candle above this particular level supports the odds of a bullish reversal.
On the upside, the immediate resistance prevails around the 12,800 level, and a bullish break above this particular level can expose the NASDAQ price towards 12,950.
On the lower side, a bearish breakout of the 12,500 level has the potential to break lower towards 12,400 or 12,200 levels. Meanwhile, the leading technical indicators such as RSI and MACD are now entering the buy zone, supporting the bullish momentum.
Therefore, let's keep an eye on the 12,600 level, as this may support NASDAQ prices.
Related:
* EUR/USD Price Analysis – March 29, 2023
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