Hot Offers Special Rates Just in PipRebate
The bulls are inlove with technology stocks |

Nasdaq has again moved to new all-time highs while S&P 500 approaches similar levels. While better than expected results from Walt Disney Company (+8.8%) together with big movers like Square Inc. (+7.10%) and Boeing (+5.58%) have supported the move higher in the US equities, in general, it is technology sector that attracts the most investment dollars. By reading further you agree with our disclaimer at the bottom of this page and acknowledge that we don’t provide investment advice.

Sector level analysis reveals how investment dollars have flowed away from almost every other market sector into technology. Over the last 10 days, technology has gained 4% relative to the S&P 500 while e.g. energy has lost 3.6% and utilities 3.9%. In this calculation, the S&P 500 is constant and sector performance is calculated as change from this base. This shows how investors believe it’s the US technology companies that will emerge as winners from the crisis created by Covid-19. This same bullishness can be seen in indicators that measure how widely supported the recent index moves are. At the time of writing this, 78% Nasdaq 100 stocks are trading above their 200-day moving averages while only 58% of S&P 100 stocks are above the same moving averages. It seems likely that as long as the Fed keeps on borrowing at the current rate and market participants have a reason to believe that there will be more stimulus, the prices of stocks will keep on trending higher. This, however, isn’t a promise, only speculation and prices never move higher in a straight line. Therefore please remember that there will be retracements and volatility that can cause losses to careless traders. Especially to those that lack the discipline to keep their bet sizes small and/or a good trading strategy.

Traders wishing to learn the right skills and to improve their swing trading and day-trading ability are warmly welcomed to join our VIP Black program. Start by registering an account and depositing here. We will help you to learn vital skills for trading.

Nasdaq has been trading higher in a rising channel and is now trying to move above the most recent short terms trading range. Blue horizontal line points to the lower end of this range while the red line shows the upper end of the range. Bulls are now trying to push the market higher from this “box” but at the moment it’s unclear whether there will be enough demand to move the index higher immediately or whether a re-test of supports is needed first. As per Stochastics oscillator, the market is overbought and losing momentum. This is confirmed by the narrow range candle formed yesterday. Key daily timeframe support levels can be found at 10300 and 10502 (e-mini Nasdaq futures prices). We warmly welcome you to join our webinars to learn more about market analysis, risk management and trading strategies. You can register and deposit to your account here.

Recent macroeconomic data

Chinese Manufacturing PMI: 51.1 (50.8 expected)
US Manufacturing PMI: 54.2 (53.6 expected)
Canadian GDP 4.5% (3.5% expected)
NZD unemployment rate 4.0% (5.6% expected)
US ISM Services PMI 58.1 (55 expected)
US Markit Final Services PMI 50.0 (49.6 expected)
Macroeconomic releases today and tomorrow

Bank Of England rate decision Unchanged at 0.10%
BOE Governor Bailey speaks
Canadian unemployment rate 11.1% expected
US Non-Farm Payrolls 1550K expected
US Average Hourly Earnings -0.5% expected
US Unemployment rate 10.5% expected
For a more detailed analysis and for actionable trading strategies and ideas, please join our VIP program at We want you to be able to exploit trading opportunities in silver, gold & palladium with 0 commission and tight spreads. Take advantage of the best trading account in the industry: Tiomarkets VIP Black. For more details on this truly exceptional offering see here.

TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and it’s affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions.

The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with any legal requirements for financial analyzes and must, therefore, be viewed by the reader as marketing information. TIOmarkets prohibits the duplication or publication without explicit approval. FX and CFDs are leveraged products. They are not suitable for every investor, as they carry a high risk of losing your capital. Please ensure you fully understand the risks involved.

Open an account today to trade with a broker you can rely on.

Recent Posts


Leave a reply

You have successfully replied to this comment! Please Wait, as soon as possible it will be checked and confirmed!
There are some issue! Unfortunately your message has not been sent! Please try again.