U.S. equity markets tumbled again on Tuesday, dragged down by a sell-off in technology shares as investors were assessing threats to earning growth for the industry that propelled last year’s rally. Among those whose values drop significantly, Facebook leads the way while the Chief Executive Officer Mark Zuckerburg is expected to testify before the U.S. House Energy and Commerce Committee as lawmakers put increasingly concerns over privacy protection.
Concerns over trade tensions, sparked by President Donald Trump’s protectionist move, have greatly stoked market volatility very recently, and may continue to do so until China and America make an agreement for the trade.
What investors should keep an eye on is the upcoming annualized GDP at fourth quarter, which is expected to be 2.7% growth, 0.2% higher than the previous.
Nasdaq 100 index plummeted to almost offset previous gains the day before, down more than 3.3 percent to 6525.2 points, where the 61.8% Fibo retracement is actually located, the second time to test how strong the support is. Moreover, let’s extend our focus into big drop in early February, where the ascending channel that index is moving through started. Couple with another support of this lower line, the index is expected to get bolstered and will test 50.0% Fibo retracement.
As Stochastic oscillator turned back above 20, which is seen as the oversold threshold, the index will likely rally with an increasing stochastic figure.
Chart 1: NAS100 Daily
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