Nasdaq 100 trading idea: Bounce continuation up to 14,000 pt possible

The Nasdaq 100 breaks the key resistance at 13,000 points

Wall Street recouped yesterday’s losses on Wednesday as major US indices rebounded after being penalized by renewed risk aversion caused by Nancy Pelosi’s visit to Taiwan.

Wall Street was lifted by falling oil prices that broke through important supports, suggesting that inflation peak is near or behind, but also by better-than-expected economic and earnings data.

The ISM Services Index unexpectedly improved in July, allaying fears of a near-term recession, while the S&P Global Services PMI was revised surprisingly higher, but remains in depressed territory. On the other hand, industrial orders rose more than expected and mortgage applications rebounded accordingly.

The technology giants have proved to be an important support for the market, helping the IT sectors (+ 2.7%), consumer discretionary (+ 2.5%) and communication services (+ 2.5%) ) to finish at the top of the standings. The energy sector (-3.0%) was the only sector to finish in the red in the wake of the oil price.

Nasdaq 100 Daily Chart – Key Levels

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