NASDAQ 100 Hits Resistance Despite Strong Start; Amazon's Results Boost Index
The NASDAQ Composite, despite a strong start to the week, has hit a technical resistance level. Analysts warn of overbought conditions and suggest caution due to high valuations. Market breadth was negative, with more stocks declining than advancing, and institutional investors showed skepticism. Amazon's impressive results, however, propelled the index to a strong weekly performance.
The NASDAQ Composite started the week with a bullish gap, but analysts noted that it has reached a technical resistance level after strong gains. While the overall weekly trend remains positive, there are signs of overbought conditions, and a potential short-term correction is anticipated. Analysts recommend waiting for pullbacks before buying, rather than chasing the rally at current levels.
Market breadth was negative, with more stocks declining than advancing. This indicates a shaky uptrend, supported by below-average trading volume and a high put-call ratio of 1.1. Institutional investors' skepticism is evident, suggesting a cautious approach.
Amazon's impressive quarterly results propelled the entire index into positive territory. The NASDAQ Composite ended the week with a strong performance, led by Amazon's 9.6% surge. Despite Amazon's gains, other tech stocks, such as Meta Platforms, continued to decline.
A free analysis released on November 1 provides urgent action steps for investors regarding the NASDAQ Composite. The index remains above its critical 50-day and 200-day moving averages, indicating a technically bullish signal. The coming week, filled with fresh economic data, will determine the direction of the NASDAQ Composite. The index is facing a key resistance level, with a breakthrough potentially leading to further gains or a retreat to lower support levels.
