The question now will be one asking about the resolve of dip buyers in the day ahead. After the poor reception to Meta and Alphabet’s earnings releases, it is looking rather dire for overall equities sentiment as tech shares are proving to be the real drag. The Nasdaq broke below a key trendline support already yesterday but now looks set to fall further below its 200-day moving average (blue line):
Nasdaq Composite index daily chart
A break of that key level would be an ill omen for equities in general and add to the pessimism we’re seeing in the last week or so.
This will be one of the main things to keep an eye out for as we look towards the latter stages of trading this week. As risk sentiment sours alongside higher yields, does that mean that cash i.e. the dollar is king again?