Nasdaq 100, Dow Jones, FAANG Fundamental Outlook of the Fresh Earnings Drop

STOCKS, FAANG, NASDAQ 100, DOW JONES, FUNDAMENTAL ANALYSIS – KEY POINTS

  • Key support areas maintain the bullish biases in the indices.
  • How has Nasdaq faired relative to the Dow Jones?
  • FAANG Stock valuation tested in the new earnings week
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This month, the Dow Jones Industrial Average is outperforming the technology-heavy Nasdaq composite, while this has significantly reversed the course over the past few trading sessions. In the week ahead, the crucial FAANG enterprise members (Alphabet, Apple, Amazon, and Facebook) haven’t yet reported earnings after the lackluster prints from Microsoft and Netflix with the companies defending their highly elevated stock valuations. The following are some of the fundamental levels to watch, Dow Jones Retraces to 27,000 – Hang Seng Index Weighed by China-US Tension.

DOW JONES FUNDAMENTAL OUTLOOK

Although Dow Jones, futures showed below, is yet to retest the highs from last month. The key dominant trend from March significantly remains bullish. The short term surging support from may have guided the Dow significantly higher as shown by the red line on the following chart. The most recent bounce might send the price action to test the pivotal resistance at 27,063 moving to 27,624. Moreover, the 50-Day SMA is another key support territory to watch for the occasion of the turn lower. As noted earlier, this sits slightly below the surging trend line.

Dow Jones Futures Chart

NASDAQ

NASDAQ 100 FUNDAMENTAL OUTLOOK

The Nasdaq 100 has recently been idling. This has been happening from the time the prices established key resistance ranging from 10964 to 11058. The price action declined after the adverse RSI divergence arose, signifying the fading uptrend momentum. At times this might precede the turn lower, but the key support levels maintain the bullish bias. There is a great combination of the surging support from April as shown in the red parallel line below. The daily close below 10301 exposes the rising support. Also, the resuming upside trend is further exposed to 11.346 Fibonacci (23.6% extension).

Nasdaq Futures Chart

FAANG GROUP FUNDAMENTAL OUTLOOK

On the following chart, the FAANG index highlights the prices of the Alphabet, Netflix, Apple, Amazon, and Facebook shares. On the other hand, the FAANG group has also highlighted the 64.54% surge since it bottomed in March as compared to Nasdaq 53.80% rise over the same period.

The significant upside trend in the FAANG index below is currently maintained by the surging support from the March bottom. The red line on the chart below has shown this. Recently, these prices bounced upon establishing the new support as the key range between 1086 to 1108. Resuming more gains in the stocks entails removing the ceiling between 1193 and 1229. On the other hand, when it comes to the soft earnings this new week from these technology companies, you should keep a watchful eye on the new 50-day SMA that can keep the falls at bay.

FAANG Index Chart

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