NASDAQ : March Recovery
(Tue, 2 March 2021). US equity indexes rebounded on Monday as Wall Street began the new month of trading with a restored sense of optimism. The New York session saw a broad-based appetite for risk reemerge after last week’s selloff when climbing Treasury yields spooked investors and pushed major US indexes near correction territory.
The S&P 500 and Dow Jones Industrial Average closed 2.38% and 1.95% higher, respectively. Technology stocks and small-caps were the leaders, however, with the Nasdaq Composite posting an impressive 3.01% gain, bolstered by Tesla’s 6.36% climb. The Russell 2000 closed 3.37% higher as the VIX “fear gauge” lost nearly 17%.
Monday’s upbeat mood began with a better-than-expected report on the US manufacturing sector from the Institute of Supply Management. Analysts were expecting the ISM report for February to cross the wires at 58.8. 60.8 – which represents the strongest read since the pandemic started – was the actual outcome.
NASDAQ TECHNICAL OUTLOOK
The Nasdaq 100 index gained 2.89% on Monday as the index pushed back above its 23.6% Fibonacci retracement level from the September to February move. The MACD indicator appears to be picking back up after the move and is on track to make a bullish cross back above its center line. Moreover, the 50-day Simple Moving Average was overtaken today and bulls will likely aim to hold that key moving average for another push higher.
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