Current trend

One of the leading American indices, NQ 100, is demonstrating upward dynamics, trading in the area of 19880.0, against the backdrop of the US Federal Reserve’s decision to cut the interest rate by 50 basis points at once.

The instrument is now receiving additional support from expectations of further easing of monetary parameters: earlier, member of the US Federal Reserve Board of Governors Christopher Waller spoke in favor of a more aggressive reduction in borrowing costs if macroeconomic statistics continue to deteriorate, otherwise there will be no obstacles to moving to a more moderate rate of adjustment of the rate by –25 basis points at the upcoming meeting. Yesterday, September business activity data were released, which pointed to a slowdown in economic growth, with the Manufacturing PMI falling to 47.0 points from 47.9 points and the Services PMI — to 55.4 points from 55.7 points, supporting market expectations for a 50-basis-point rate cut in November (the Chicago Mercantile Exchange (CME) FedWatch Tool now puts the probability at 50.2%).

A minor restraining factor for NQ 100 quotes is the corrective growth in the bond market: the yield on 10-year debt securities rose to 3.762% from 3.619%, 20-year ones — to 4.148% from 4.013%, and 30-year ones — to 4.107%, the highest since early September.

The growth leaders in the index are Tesla Inc. ( 4.93%), Intel Corp. ( 3.30%), Micron Technology Inc. ( 2.94%), PDD Holdings Inc. DRC ( 2.40%).

Among the leaders of the decline are Regeneron Pharmaceuticals Inc. (–4.63%), Ross Stores Inc. (–2.81%), Marvell Technology Inc. (–2.79%).

Support and resistance

On the daily chart, quotes are rising within a channel with boundaries of 20700.0–18800.0.

Technical indicators reversed and issued a signal to start buying: fast EMAs on the Alligator indicator are still moving away from the signal line, and the AO histogram is forming new upward bars, rising in the buy zone.

Support levels: 19630.0, 18840.0.

Resistance levels: 20000.0, 20700.0.

Trading tips

If the asset continues growing and consolidates above 20000.0, long positions with the target at 20700.0 will be relevant. Stop-loss — 19800.0. Implementation time: 7 days and more.

If the asset reverses and declines and the price consolidates below 19630.0, short positions can be opened with the target at 18840.0. Stop-loss — 20000.0.