Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Nasdaq 100: Futures struggle after a session where tech was on top

Technical overview unchanged even as it fails to secure consistent gains, while in sentiment there’s been a shift among IG clients to majority sell.

Trading Source: Adobe images

Session of gains led by tech as oil prices dropped

Although geopolitical tensions have yet to subside, the fall in oil prices was seen as a boon for risk appetite and saw most sectors finish higher led by tech enjoying a healthy margin and followed by communication. In fact, only materials and energy finished lower and notably so for the latter after enjoying successive gains prior. That helped power the tech-heavy Nasdaq 100 to an outperforming finish against both Dow and S&P 500, though futures are showing partial retreat as of writing.

There wasn’t that much to digest in terms of economic data out of the US where NFIB’s small business optimism index improved slightly but was also a slight miss at 91.5 vs 91.7 expectations, RCM/TIPP’s survey showing results that are still in pessimistic territory even if improving from 46.1 to 46.9, and the trade deficit for August narrowing but still sizable at $70.4bn.

In terms of FOMC (Federal Open Market Committee) members speaking, there was the Fed’s Kugler in favor of further cuts if inflation eases. As for earnings among the tech-heavy index’s components, PepsiCo beat on earnings but suffered a miss on revenue and lowered its full-year revenue outlook.

Minutes from the latest FOMC meeting while noting geopolitical updates

Up next, we’ve got minutes from the latest FOMC meeting to digest, and that’s the one where they opted for a larger 50bp (basis point) cut to initiate the easing cycle, though markets aren’t optimistic they’ll see a repeat in their next meeting in November with market pricing (CME’s FedWatch) via heavy majority anticipating a smaller 25bp rate reduction instead. There are several FOMC members speaking as well, but at this stage traders are still noting geopolitical updates and its potential impact on the macro picture.

Nasdaq 100 Technical analysis, overview, strategies, and levels

Key technical indicators on the daily time frame are neutral to the positive side at this stage, with price still above all its main daily moving averages and not far off the upper end of what are narrow Bollinger Bands, on the DMI (Directional Movement Index) front a reasonable edge for the +DI over the -DI but where it won’t take much to upset and cause a negative DMI cross, an ADX (Average Directional Movement Index) not in trending territory and dropping, and the RSI (Relative Strength Index) far from overbought territory. That leaves the technical overview as ‘bull average’, though key technical indicators don’t require much to shift due to price-indicator proximity and means overviews will be on shaky ground at these levels, especially with the weekly time frame’s overview that’s ‘consolidation – volatile’ and not showing signs of settling.

Current Technical Overview Bull Average
Technical Overview Conformist Strategies Buy 1st Support After Significant Reversal,
Buy 1st Resistance Upon Breakout From Below
Technical Overview Contrarian Strategies Sell 1st Resistance After Reversal,
Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 20585
2nd Resistance 20489
S/L for 1st Resistance 20393
1st Resistance 20297
Relative Starting Point 20106
1st Support 19915
S/L for 1st Support 19819
2nd Support 19723
S/L for 2nd Support 19627

Source: IG

IG client* and CoT** sentiment for the Nasdaq 100

CoT speculators are still net long with little change in percentage terms down only a notch from the week before to 57% on an increase in longs (by 4,324 lots) that was too far off the increase in shorts (4,458), and where they are now net long all four main indices (DJIA, S&P 500, Nasdaq 100, Russell 2000).

IG clients shifted from the middle yesterday to a majority short 58% with the price increase and relatively rangebound movement prior enticing more into range-trading and causing larger percentage changes in sentiment on relatively small changes in price. That means when the index rises in price, longs are enticed into closing out while shorts initiate.

Nasdaq 100 Source: IG

Nasdaq 100 chart with retail and institutional sentiment

Nasdaq 100 chart Source: IG


*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am for the outer circle. Inner circle is from the previous trading day.
**CoT sentiment taken from the CFTC’s Commitment of Traders report, outer circle is latest report released on Friday with the positions as of last Tuesday, inner circle from the report prior.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Keep an eye on FOMC opportunity

Find out how FOMC meetings can affect the markets ahead of the next one on 17-18 December 2024.

  • How might the next Fed meeting impact your trading?
  • What was decided at the last Fed meeting?
  • How does the FOMC announcement usually affect the dollar?
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.