Even though US stocks ended with losses yesterday, it could’ve been much worse if the early losses were anything to go by. For tech shares, things ended up pretty decently with the Nasdaq only falling by 0.4% as compared to the lows of over 2% losses at one point. The turnaround in sentiment is certainly stirring up some positive animal spirits now with US futures surging higher today. For the Nasdaq itself, there’s some added encouragement as dip buyers held their nerve at a key support trendline:
Nasdaq Composite index daily chart
The break under the 200-day moving average (blue line) did set off some alarm bells but dip buyers are not down for the count just yet.
The key trendline (white line) is holding and it looks like we are likely to see a positive bounce back, at least in the early stages later today.
The focus now turns towards US data with the ADP employment change and ISM services PMI coming up. The latter in particular is one to pay attention to in potentially dictating the market mood in US trading later.
