The Nasdaq index continues to trade in an uptrend and to update historical highs: the current rate is 6937.2.
The US market is supported by news about the continuation of the work of the US government, but if the budget would not be finally approved before February 8, officials will again face an unpaid leave. Democrats and Republicans should agree on immigration issues, but the latter refuse to include in the country’s future expenditure a budget for the DACA program, which provided immunity against deportation to families who illegally entered the country with under-age children. According to statistics, the largest number of applications for participation in this program came from residents of California, and this counts about 162K. Republicans think that this leads to the emergence of a cheap labor force and the local population can suffer from an increasing competition.
Also yesterday it became known that the IMF improved the US economy forecast: in 2018, it is expected to grow to 2.7% against previously forecasted 2.3%. The tax reform will also have a positive effect, which will free up additional capital and create new jobs by expanding a business.
Support and resistance
Stochastic is at the level of 75 points and indicates the possible correction.
Resistance levels: 6953.1, 6970.2.
Support levels: 6913.6, 6875.0.
Long positions may be opened from the level of 6913.6 with take-profit at 6936.7 and the stop-loss at 6905.0.
NASDAQ100 index of the American stock exchange
|Support levels||6875.0, 6913.6, 6953.1, 6970.2|
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