The earnings season is well underway with airliners and big banks having kicked thing off, with mostly encouraging results that helped Wall Street sentiment. FXCM's AIRLINES & US.BANKS Stock Baskets, both run a five-day profitable streak, with gains of around 4% and 5% this week respectively, as of Tuesday's close.
The tech-heavy NAS100 was also able to benefit with a two-day relief rally from its recent 2+ year lows, as focus shifts to tech mega-caps, with Tesla Motors Inc reporting on Wednesday. Netflix announced its results on Tuesday after market close and its stock surges in premarket, as it added nearly 2.5 million subscribers in Q3. The rest of the FAANG Stock Basket companies, report over the upcoming week.
Despite the strong results from streaming giant Netflix, NAS100 falters today ahead of key resistance area. This maintains broader bias on the downside and risk of fresh lows intact (10,437), although sustained slide below 10,089-00 may prove elusive in the near-term.
On the other hand, the index has not lost the ability to extend its recovery, but will likely need a catalyst for closes above both the EMA200 and the descending trendline from the summer highs (11,530-11,780). This would allow it to look towards the daily Ichimoku Cloud (12,500-12,600), but we are cautious at this stage for such prospect.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.