US100, Time frame:  weekly, Tools:   SMA 75 US100, Time frame:  weekly, Tools:   SMA 75

Technical analysis – Nasdaq 

A review of the accompanying chart shows that the Nasdaq Index continues to maintain its upward trend and hold above the key support zone defined by the levels between 27,000 and 26,250. This is despite the index declining by approximately 4.9% last week and posting losses for four consecutive weeks. With the index staging a positive rebound this week, the significance of the 27,000–26,250 support levels can be summarised in the following technical observations:

  1. They represent support along an extended upward trendline connecting a series of previous higher lows.
  2. They also represent the 75-week moving average, from which prices have managed to stage positive rebounds.
  3. Finally, this zone previously acted as a resistance area before turning into a support zone, which technically explains the current positive rebound.

The key question is whether the Nasdaq Index will manage to hold above these support levels or whether they will give way, prompting the index to search for a new bottom at which to stabilise.

Fundamental analysis – Nasdaq

Markets are currently being driven by several factors. The most important include the decline in oil prices, which has boosted investors' risk appetite, and the reduced likelihood of further escalation in the region, amid reports that the parties to the conflict have reached an agreement that could lead to the reopening of the Strait of Hormuz.

Finally, today's inflation data will provide markets with a clearer picture of interest rate expectations ahead of the interest rate decisions scheduled for next month.

Overall, investors are facing a complex and uncertain landscape. Prices are likely to remain within their current sideways range as markets await greater clarity on diplomatic developments and, consequently, the direction of oil prices and inflation.