The Nasdaq 100 index is set to undergo a special rebalancing after the market close on July 21, 2023. This rebalancing aims to address the overconcentration of the most heavily weighted stocks in the index. The decision to rebalance comes as the aggregate weighting of the largest stocks in the index has exceeded the 48% threshold. The rebalancing will involve adjusting the weightings of the top five stocks, reducing their overall weight while increasing the weightings of smaller market cap stocks. This adjustment may potentially impact the performance of the Nasdaq 100, potentially lowering its year-to-date returns. The rebalancing will not lead to an equal-weighted Nasdaq 100 but aims to improve the breadth of investments within the index. There is also speculation about the possibility of a similar rebalancing occurring in the S&P 500 index.
On the technical aspect, the index is still BUY, with MACD showing bullish signals. RSI, though, is in Overbought territory.
As a pivot point might be considered 15795, if the index falls below this territory, it might try to test its support at 15707. In the opposite scenario, it might try reaching levels of 16149.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
On the technical aspect, the index is still BUY, with MACD showing bullish signals. RSI, though, is in Overbought territory.
As a pivot point might be considered 15795, if the index falls below this territory, it might try to test its support at 15707. In the opposite scenario, it might try reaching levels of 16149.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.