The Nasdaq Index seems relatively unhampered by the sluggish news coming from the banking sector. Also, yearly CPI data came as expected, and core CPI rose by 0.5% above January. The index has stood its ground and is up by 1.84%.
After the CPI data, there is an approximate 88% likelihood of the Fed hiking interest rates by a quarter-point in the next week's meeting. The Fed may plan a balancing act to keep the interest rate hike low to contain the regional banking crisis, and stir up investors' confidence. In the longer run, the rate hikes are a possibility to meet the 2% target.
The investors would weigh higher inflation and financial stability against the backdrop of the banking crisis. The Federal Reserve Bank has also announced a one-year Bank Term Funding Programme for small and medium-sized banks.
The Fed will also conduct a review to investigate the recent fallout of the banks and the result is expected by May 1st. All of these transparent steps can likely have a positive impact on the tech index and broader economic activities.
The price on the Nasdaq daily chart seems to follow the channel/flag, with 50 Moving Average serving as a support area. The bulls might try to break the channel and target the high of February 2, while the bears could be eyeing 10,700 - a 61.8% retracement level of the wave that started in April 2020.
The current Nasdaq Index setup could potentially exhibit a trading opportunity for day traders with the careful placement of SL.
After the CPI data, there is an approximate 88% likelihood of the Fed hiking interest rates by a quarter-point in the next week's meeting. The Fed may plan a balancing act to keep the interest rate hike low to contain the regional banking crisis, and stir up investors' confidence. In the longer run, the rate hikes are a possibility to meet the 2% target.
The investors would weigh higher inflation and financial stability against the backdrop of the banking crisis. The Federal Reserve Bank has also announced a one-year Bank Term Funding Programme for small and medium-sized banks.
The Fed will also conduct a review to investigate the recent fallout of the banks and the result is expected by May 1st. All of these transparent steps can likely have a positive impact on the tech index and broader economic activities.
The price on the Nasdaq daily chart seems to follow the channel/flag, with 50 Moving Average serving as a support area. The bulls might try to break the channel and target the high of February 2, while the bears could be eyeing 10,700 - a 61.8% retracement level of the wave that started in April 2020.
The current Nasdaq Index setup could potentially exhibit a trading opportunity for day traders with the careful placement of SL.