Nasdaq 100 crashes on soaring yields - back to 50 WMA?

März 19, 2021 12:30

The Nasdaq 100 have led stock markets lower at the end of the week as investors continue to fret about rising bond yields. The index which comprises the largest technology companies listed on the NASDAQ Exchange has seen a huge investor sell-off in recent weeks. 

The index fell more than 3% yesterday, with heavyweights Amazon, Apple and Netflix all falling even more. Tesla was down 7% at one point. Investors are concerned about rising bond yields which shows investors are preparing for higher interest rates. 

Higher rates tend to hurt growth sectors like technology the most. 

Source: Admirals MetaTrader 5, NQ100, Weekly - Data range: from Apr 6, 2014, to Mar 18, 2021, performed on Mar 18, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

 

In the long-term, monthly price chart of the Nasdaq 100 above it’s clear to see the uptrend. Currently, the price is struggling to bounce from the 20-period (blue) exponential moving average as it did last November. 

If the price does manage to break through this level, we could see a correction back down to the 50-period (red) exponential moving average. However, if price can stay above the current moving average there may be another attempt for a new record high.

Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on thousands of other instruments across Forex, stocks, indices, commodities and more?

You can get this indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admirals (formerly Admiral Markets) to the exclusive Supreme Edition! You’ll also receive a whole range of advanced trading tools such as correlation and sentiment indicators!

Start your free download by clicking on the banner below:

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Avatar-Admirals
Admirals Eine Komplettlösung für das Bezahlen, Investieren und Verwalten Ihres Geldes

Admirals ist mehr als ein Broker. Wir sind der Dreh-und Angelpunkt für Ihre Finanzen, indem wir Ihnen eine breite Palette von Finanzprodukten und -dienstleistungen anbieten. Wir machen es möglich, persönliche Finanzen durch eine Komplettlösung für das Investieren, Ausgeben und Verwalten von Geld anzugehen.