The Nasdaq 100 stalls while waiting for the Fed
The Nasdaq 100 index could rebound in the short term after returning last week to major support at around 13,000 points. The market is consolidating at this level ahead of the outcome of the Fed meeting tonight, which should conclude with a 50 basis point rate hike and the announcement of the start of the central bank’s balance sheet reduction. .
Investors’ attention will focus on the terms of Jerome Powell’s speech, the Chairman of the Fed could comment on the outlook for the economy, inflation and the Fed Committee’s rates.
The Nasdaq 100 could sink below its year low of 13,000 points to its March 2021 low of around 12,200 points if the Fed Chairman’s speech is deemed too hawkish. Conversely, the market is likely to rebound in the absence of unexpected announcements.
It should also be noted that many sentiment indicators are particularly pessimistic, which was usually a positive signal for equity markets in the short term, even in the event of a “bear market” (the Fear & Greed index is at 33%) .
Nasdaq 100 (Turbo US Tech 100) daily price chart – key levels