When looking at market breadth indicators for the Nasdaq 100 CFD, it is evident that there has been an increase in the percentage of component stocks above their 20-day and 50-day moving averages. This indicates a positive trend in the market, with both indicators sitting above the 50% mark. This is a good sign for short and medium-term uptrend phases.
In comparison to other indices such as the Dow Jones Industrial Average and the Russell 2000, the Nasdaq 100 CFD has underperformed in the past two weeks. This is primarily due to the bull steepening of the US Treasury yield curve. However, with the potential bullish reversal ahead of the release of Tesla and Alphabet Q2 earnings results, there is a chance for a shift in momentum.
Impact of Tesla and Alphabet Earnings
The upcoming earnings results of Tesla and Alphabet are likely to have a significant impact on the Nasdaq 100 CFD. Both companies are among the top 10 component stocks of the index, and their performance can sway the overall market sentiment. Investors will be closely watching how these earnings reports unfold to gauge the future direction of the Nasdaq 100.
Technical Analysis
From a technical standpoint, the Nasdaq 100 CFD may have reached an inflection point for a potential bullish reversal. The recent positive price actions, combined with the bullish divergence condition sighted on the hourly RSI momentum indicator, suggest a shift towards a more bullish outlook. However, the key support level at 19,520 must hold to validate this scenario.
Looking at the short-term trend of the Nasdaq 100 CFD, it is clear that there is a potential for a bullish reversal if the 19,520 pivotal support level remains intact. A break below this level could signal a deeper corrective decline, exposing the index to near-term supports at 19,115 and 18,950. It will be crucial to monitor the price action around this support level to determine the future trajectory of the Nasdaq 100.
The Nasdaq 100 CFD is currently at a critical juncture, with market breadth indicators showing positive trends and potential for a bullish reversal. The upcoming earnings reports of Tesla and Alphabet will play a significant role in shaping market sentiment. Traders and investors should closely monitor the key support level at 19,520 to gauge the sustainability of the current uptrend.