- The NASDAQ struggles to regain momentum for two consecutive days, but will Monday’s session unveil new momentum?
- Apple is set to unveil the New iPhone, Apple Watch and AirPods on September 10th. Apple stocks have risen 4.00% in the past 30 days.
- Global indices show unclear sentiment. The German DAX and NIKKEI225 trade lower on Monday, but the Russel2000 adds 0.75% before the US Session open.
- US Durable Good Orders rises9% but is yet to positively influence the NASDAQ.
USA100 (NASDAQ) Analysis
The price of the NASDAQ significantly rose from the 8th of August onwards due to the expectations of lower interest rates. However, the price has struggled over the past 3 trading sessions. As a result, traders are contemplating what this means for the most successful index of the past decade.
The lack of buyers is largely due to the higher price compared to the recent weeks as well as the lower market sentiment. Investor sentiment fell on Monday due to escalations in the Middle East between Lebanon and Israel as well as between Russia and Ukraine. Due to this the price of the NASDAQ is largely moving sideways and quickly corrected after large price movements. However, the lack of buyers is not yet indicating a bearish trend.
The NASDAQ currently trades at the 100-Period sentiment line and just below the trend-line. In addition to this, the price is at 49.89 on the RSI and at the VWAP-line. As a result, the price is in line with orders and indicating neither a bullish nor bearish trend. However, if the price trades above $19,839.17 buy signals may intensify.
Apple is expected to unveil new models of the iPhone, Apple Watch, and AirPods on September 10th, with sales likely to begin at the end of the month. The presentation will primarily focus on the iPhone 16, which is set to feature significant enhancements in photography and video capabilities, including new sensors and advanced image processing algorithms. These new models may help sustain demand for Apple’s products following disappointing results in China, where sales declined by 6.5%, far exceeding the anticipated 2.4% drop.
Additionally, Apple has introduced significant changes to its corporate charter to enhance transparency in key management decisions. Notably, the process for selecting candidates for the Board of Directors will now be more accessible to shareholders, and the voting process has been simplified to merely submitting a voting application.
Earlier this month, Apple released its Q2 financial report. Revenue reached $85.8 billion, surpassing the forecast of $84.45 billion and last year’s $81.8 billion for the same period. Earnings per share came in at $1.40, beating expectations of $1.35 and improving from $1.26 a year ago.
When monitoring the top 24-most influential stocks for the NASDAQ, 50% are trading lower in the pre-market session. Therefore, again no clear direction. Though if these 24 stocks were to show 70% down or up, this would be viewed as a signal. Currently, the VIX index trades 0.20%, which indicates a stronger price movement. Bond yields on the other hand are 0.20% lower which also points to a higher price for the NASDAQ in the short term.
For positive price movements, the market will be hoping for a higher Consumer Confidence Index (tomorrow) and GDP to read as expected (Thursday). In addition to this, investors will also hope for more rates cut signals. In the short-term investors will hope for de-escalation in the Middle East!
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Michalis Efthymiou
Market Analyst
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