Current trend

One of the leading US indices, the NQ 100, shows neutral dynamics, which is mostly related to mixed macroeconomic data.

Thus, investors continue to monitor forecasts regarding the volume of interest rate adjustments at the September meeting. According to the Chicago Mercantile Exchange (CME Group) instrument FedWatch Tool, the probability of reducing the value by 25 basis points is 65.5%, and by 50 basis points is 34.5%. Analysts' estimates have changed recently, and now they expect a smoother easing of monetary parameters, which can be taken into account in current quotes, and have almost no effect on the dynamics of the stock market.

Today, the financial report of graphics processor manufacturer Nvidia Corp. will be published, from which analysts expect revenue to reach 28.68 billion dollars for the first time in history, far exceeding the figure of the same period last year of 13.51 billion dollars. In addition, earnings per share(EPS) are projected to rise to 0.6441 dollars, which is also a record for the company.

Another reason for the unstable dynamics of the NQ 100 remains the situation in the domestic bond market: the rate on 10-year debt securities amounted to 3.830%, almost unchanged from last week, when the value of 3.859% was fixed, and for 30-year bonds it decreased to 4.120% from 4.147%.

The growth leaders in the index are Starbucks Corp. ( 3.11%), Analog Devices Inc. ( 2.76%), Qualcomm Inc. ( 2.62%), Booking Holdings Inc. ( 2.20%).

Among the leaders of the decline are PDD Holdings Inc. DRC (˗4.09%), Moderna Inc. (˗3.28%), Old Dominion Freight Line Inc. (˗3.14%).

Support and resistance

On the D1 chart, the index quotes continue to correct, moving away from the resistance line of the descending channel 18500.0–17600.0.

Technical indicators have fully deployed and issued a new signal to start purchases: fast EMAs on the Alligator indicator are fixing further away from the signal line, and the AO histogram forms new ascending bars, rising in the sales zone. 

Support levels: 19400.0, 18500.0.

Resistance levels: 19900.0, 20700.0.

Trading tips

In case of continued growth of the asset, as well as consolidation above the 19900.0 mark, one may open buy positions with a target of 20700.0. Stop-loss – 19400.0. Implementation period: 7 days and more.

In the event of a reversal and continued corrective decline of the asset, as well as price consolidation below the support level of 19400.0, sell positions with a target of 18500.0 will be relevant. Stop-loss – 19700.0.