Nasdaq Lift on FAANG Stock, DJIA Rally Fizzles with FOMC in Focus


Equity Analysis and News

  • Federal Reserve Minutes In Focus
  • Nasdaq 100 | FAANG Stocks Get Off to a Good Start for Q3 Earnings
  • DJIA | Yesterday’s rally Fizzles Out

Price

200DMA

RSI

Open Interest

IG Sentiment

Europe

FTSE 100

7067

7468

18

613,238

Mixed

DAX

11693

12536

29

99,514

May Reverse Higher

CAC 40

5166

5382

24

287,933

Mixed

US

S&P 500

2809

2767

35

2,739,270

Mixed

DJIA

25798

25146

40

91,734

Mixed

Nasdaq 100

7307

7125

46

260,700

Federal Reserve Minutes In Focus

Today, investors will prepare for one of the most notable events of the week, which comes in the form of the FOMC minutes from the Fed’s September monetary policy meeting. This is of particular importance given that a prominent factor in last week’s panic selling and large volatility in global markets had been due to the Federal Reserve’s recent hawkish commentary. As such, traders will peruse the statement in order to confirm or deny fears over higher interest rates in the US.

Nasdaq 100 | FAANG Stocks Get Off to a Good Start for Q3 Earnings

Futures are implying a firm start at the open for the Nasdaq relative to its counterparts with Nasdaq futures up 0.4%. A supportive factor behind the rise has been the strong earnings update from one of the major tech firms, Netflix, who reported far better subscription growth figures than analysts had estimated. Shares in the tech giant are up 10% in pre-market hours. However, given the negative sentiment across the rest of global markets, early gains may be faded. Resistance ahead is situated at the 7400 level.

Nasdaq 100 Price Chart: Daily Time Frame (Mar-Oct 18)

Nasdaq Lift on FAANG Stock, DJIA Rally Fizzles with FOMC in Focus

DJIA | Yesterday’s rally Fizzles Out

Unlike the Nasdaq, DJIA futures are pointing towards a negative open. As such, yesterday’s rally which saw both the DJIA and S&P 500 close 2% higher looks to have fizzled out as confidence in global growth prospects seems to be somewhat muted. A close above the 76.4% Fibonacci retracement is key in order to confirm the short-term base at 25,000.

DJIA Price Chart: Daily Time Frame (Nov 17-Oct 18)

Nasdaq Lift on FAANG Stock, DJIA Rally Fizzles with FOMC in Focus

KEY TRADING RESOURCES:

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX





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