Crypto News

Nasdaq 100 Index Plummets After Fed Decision

Nasdaq 100 Index Plummets After Fed Decision
© Copyright Image: Forex Trading Blog

On 17th December, analysing the Nasdaq 100 chart (US Tech 100 mini on FXOpen), we:
Drew a blue upward channel relevant for 2024;
Noted that the price was near the upper boundary of the channel, while the RSI indicator had entered the overbought zone;
Suggested that bulls might face difficulties in pushing the price to a new all-time high.

Yesterday, the Fed cut the interest rate by 0.25%. Although it was anticipated, the market reaction was sharply negative. The Nasdaq 100 (US Tech 100 mini on FXOpen) dropped by approximately 4%.

The steep market reaction was driven by Fed Chair Jerome Powells comments during the press conference, where he stated that the FOMC plans to cut rates only twice in 2025, contrary to market expectations of four cuts.

Technical analysis of the Nasdaq 100 (US Tech 100 mini on FXOpen) chart shows that:

The price remains in the upper half of the channel, supported by the 21,230 level, which previously acted as resistance (as indicated by arrows).

We can assume that the area around the median of the blue channel (marked by orange lines) could act as a barrier to further downward momentum, as medians often serve as equilibrium zones where supply and demand balance out.

Whats next? According to analysts at Zacks, record highs for the tech stock index may not be a topic of discussion in the near future.

There is a possibility that a local descending channel could form, potentially driving the price into the lower half of the broader upward channel.

Read more: https://fxopen.com/blog/en/oa-nasdaq-100-index-plummets-after-fed-decision/

Text source: Forex Trading Blog

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories