NASDAQ 100 touches three-month high ahead of Netflix earnings
NASDAQ 100 scales further highs
The index of the 100 biggest US tech stocks, the NASDAQ 100, has continued to make headway so far in October, shrugging off the US inflation reading last week.
Overall the index looks set to push higher, supported by the forecast for strong earnings from the Magnificent 7. As a group, these seven mega-cap names are expected to see earnings growth of 19% for the third quarter (Q3).
NASDAQ 100 – IG client sentiment overview
As the most popular market on the IG platform, it is worth looking at how IG clients are trading the NASDAQ 100. At present clients are 67% long, with buyers dominating in the lower three timelines, though since the beginning of the month we have seen a preponderance of sellers:
IG sentiment chart
NASDAQ 100 technical analysis – bulls in a strong place as Q4 gets underway
The NASDAQ 100 suffered a ‘summer swoon’ in July and August, as enthusiasm for tech stocks waned after a very strong run from the lows of October.
Early July finally saw a real correction take place, wiping almost 17% off the index and taking it to its lowest level since the end of April. Notably, however, the price held above the previous 16,970 high from late December 2023.
Since then, the price established a higher low in September above the 200-day simple moving average (SMA), and used this as a springboard to rally. Late September saw some brief weakness but this was countered with more buying pressure in early October.
Further gains now target the previous highs from July at 20,760.