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Strong tech earnings help Nasdaq 100, Dow and FTSE 100 to recover from US GDP surprise
After a remarkable rebound in April, stocks have been bolstered by tech earnings, helping them to recover from a surprise fall in US GDP.
Nasdaq 100 bolstered by tech earnings
The Nasdaq 100 index has returned to the levels seen on 2 April, marking an impressive rebound from the lows of the month below 17,000.
The 24/25 March high at 20,350 is the next target, followed up by the January and February lows at 20,770. Yesterday’s weakness saw buyers emerge near 19,000, so a close below this level is needed to reverse the bullish view.
Nasdaq 100 daily chart
Dow recovers from GDP shock
Like the Nasdaq 100, the Dow Jones shrugged off yesterday’s post-gross domestic product (GDP) weakness to continue April’s rebound. A close above 41,000 would mark a fresh positive development.
The late March high for this index is at 42,600, though until the price recovers 43,000 the current bounce remains a ‘bear market rally’. A reversal below 40,000 could signal that the sellers have reasserted control.
Dow Jones daily chart
FTSE 100 rebound goes on
Further gains for the FTSE 100 index have seen it touch 8500 for the first time in almost a month.
Like other indices, it is still at risk of posting a lower high, but for the moment the buyers remain in charge. 8400 provided support this week, and from here 8600 and then 8750 come into view.
A close back below 8400 could be the sign that a new leg lower has begun.
FTSE 100 daily chart
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