A quick look at today: the Nasdaq was steady today maintaining a 12,000 – 12,100 range before closing at 12,072.
Even though the Nasdaq was subdued and remained within tight ranges, investors maintained interest for government debt at all maturities. The one month Treasury rate fell from 3.95% to 3.4% alongside rising demand and prices. US bond yield gyrations reflect investor sentiment regarding the US economy, with lower yields suggesting investors remain confident about lending to the US government.
Uncertainty around the Nasdaq is reflected by published market data as United States Services PMI came out at 53.7, while a consensus of analysts was expecting 51.5. United States Existing Home Sales (Mar) released yesterday at 14:00 UTC with a figure of 4.44 million, while the previous figure was 4.55 million. Fresh Philadelphia Fed Manufacturing Index (Apr) data from United States came out at -31.3.
Nasdaq is approaching key support, around 65.32 points away from 12,000. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. The Nasdaq made an initial breakout above its 10 day Simple Moving Average at 12,079, a potential indicator of a newly emerging bullish phase.
Despite muted price action in the Nasdaq, chart analysis indicates it is positioned for a bullish run in the short term.
While the Nasdaq was pretty flat today, mixed performances were seen elsewhere as Hang Seng lost 1.57% today and closed at 20,400. KOSPI Composite Index slides down 0.73% today and closed at 2,563. ASX 200 lost 0.43% today and closed at 7,362.2.
The index has been trending positively for about a month. The Nasdaq has recovered 18.08% since descending to a significant low of 10,200 around 3 months ago.