What Next for Nasdaq as it Exits the Bear Market?

On Friday, Nasdaq exited the bear
market that it entered in December. In December, the index fell to a low of
$5817. This happened at a time when investors were increasingly worried about
Fed rate hikes and the slowing down of the global economy. It also happened at
a time when the fears of a recession were increasing. Traders were also worried
about the trade war.

Things changed when the US
announced that it was restarting talks with China. The talks, which started in
January revolve around trade. The deadline for the talks will be in March 1. If
the two countries fail to make a deal, the US will move ahead with the tariffs
it had announced a year ago. Already, there are signs that the two countries
are way apart on the issue.

The biggest market-moving issue
was on the Fed interest rates. In December, the Fed announced that it was
planning to increase rates this year. This changed in January, when the Fed
announced that it was considering patience. By patience, the Fed may mean that
it will end its hawkish views. This was probably the main reason why the index
soared high.

Another catalyst for the index
was the earnings season. Investors considered the earnings to be a bit
satisfactory because most companies beat on the numbers.

As a result of all this, the
index has continued moving up this year. In total, it has gained by more than
20%. As of this writing, the index has moved to a high of $7073. On the yearly
chart, the price is above the 14-day and 21-day EMA while the RSI has moved
closer to the overbought level of 70. There is a likelihood that the index will
continue moving up, although this could change depending on how the talks
between the US and China go.

The post What Next for Nasdaq as it Exits the Bear Market? appeared first on Forex.Info.

Source:: What Next for Nasdaq as it Exits the Bear Market?

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