NASDAQ Above 7000.00 As Stocks Rally - Forex News by FX Leaders
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NASDAQ Above 7000.00 As Stocks Rally

Posted Wednesday, February 13, 2019 by
Shain Vernier • 1 min read

U.S. stocks are headed north again today, led by early gains in the DJIA(+185), S&P 500 SPX (+15), and NASDAQ (+27). Positive sentiment is alive and well, stemming from the U.S./China dialogue currently taking place in Beijing. Citing “progress” being made in regards to negotiations, President Trump suggested that a pending deadline for a bilateral trade agreement may be postponed. The news has attracted bids to the U.S. indices, bringing several December highs into view.

March E-mini NASDAQ Back Above 7000.00

It has been a big week for the March E-mini NASDAQ, with values rising from lows slightly above 6900.00. Going into today’s session, the key daily technical level was the Current Wave 38% Retracement (6877.50). This area stood tall as downside support, providing NASDAQ bulls with a viable long entry.

March E-mini NASDAQ Futures (NQ), Daily Chart
March E-mini NASDAQ Futures (NQ), Daily Chart

Overview: The NASDAQ’s rally of the past 48 hours is due largely to optimism over the U.S./China trade war coming to an end. There may be no asset class more impacted by a resolution than tech stocks. Friday features a meeting between China’s President Xi Jinping and U.S. Treasury Secretary Steven Mnuchin. If a blockbuster deal is reached, it is likely to be announced then. Undoubtedly, the NASDAQ will be poised to break above December’s highs on any news of a deal being signed.

In the event that the U.S./China trade war concludes by the end of Q1, the stage will be set for a prolonged rally in the indices. While a deal is not yet in place, equity bulls have to be relieved by the geopolitical developments of early 2019.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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