Market Focus: Nasdaq 100, S&P 500 Retreat; Hang Seng Surges

The Nasdaq 100 and S&P 500 retreat on tech earnings, while the Hang Seng surges. Investors monitor key levels amid market volatility.

Nasdaq 100 Rally Torpedoed by Meta Earnings

The Nasdaq 100 index sharply reversed yesterday, relinquishing most of the gains accumulated on Tuesday—sentiment souring following Meta Platforms Inc.’s earnings report. Despite the setback, the index remains above last week’s low, albeit facing challenges as more Big Tech earnings loom in the coming week. The current scenario suggests potential difficulty in sustaining upward momentum. However, if the index maintains levels above last week’s low of 16,970, a rebound could materialize. A close above 17,700 would further strengthen the bullish sentiment.

Conversely, a close below 16,970 may trigger a descent toward a late 2021 high at 16,630, possibly extending to the 200-day simple moving average (SMA).

Market Focus: Nasdaq 100, S&P 500 Retreat; Hang Seng Surges

S&P 500 Stumbles on Tech Earnings

Like the Nasdaq 100, the S&P 500 index faced headwinds on Wednesday, though it appears to have established a higher low. A breakthrough above this week’s highs, particularly at 5093, could signal a bullish turn, potentially paving the way toward the 50-day SMA and the late March highs at 5274.

On the contrary, a reversal below the 100-day SMA and last week’s low at 4925 would bolster a bearish outlook.

Hang Seng Surges Through Key Level

In stark contrast, the Hang Seng index has experienced a notable surge from mid-April lows, breaching the significant 17,000 level and the 200-day SMA. Remarkably, it closed above the latter for the first time since July. A crucial milestone awaits if the index secures a close above 17,200, as this level represents the high from early January and serves as both a peak and support in March and April, along with being a significant level since November. Further upward momentum could target the November 2023 high of around 18,300.

However, a reversal below the 200-day SMA would doubt the bullish outlook.

As global markets navigate through earnings season and various economic indicators, investors closely monitor these key indices for clues about future market trends and sentiment.

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