Nasdaq 100 Advances Ahead of Tech Giants’ EarningsNasdaq 100 Advances Ahead of Tech Giants’ Earnings
As early as tomorrow, after the close of the main trading session, quarterly results will be released by Microsoft (MSFT), Meta Platforms (META) and Tesla (TSLA), with Apple (AAPL) scheduled to report on Thursday.
As the chart shows, the Nasdaq 100 index (US Tech 100 mini on FXOpen) climbed today to its highest level since early November, rising above 25,900. Since the start of the week, the index has gained around 1.8%. This appears to reflect a shift in market sentiment:
→ Geopolitical risks are fading. Market participants seem to have adapted to the news flow surrounding tariffs and Greenland. After the initial shock, current political rhetoric is increasingly viewed as a negotiating stance rather than a genuine threat to business.
→ Confidence in market leaders. Prices are factoring in expectations that tech giants will outline roadmaps showing how their record AI spending will begin to generate net profits as early as this year.
Technical Analysis of the Nasdaq 100 Chart
Price action in the Nasdaq 100 index points to demand-side dominance:
→ the downward trajectory seen between 16 and 21 January was broken by bulls on the 22nd, with a spike in volatility (visible on the ATR indicator) highlighting a sharp change in market behaviour;
→ recent fluctuations have formed an ascending channel (shown in blue);
→ the market has confidently recovered from the bearish gap seen at the start of the week;
→ the broad bullish candle on Monday, 26 January, signals a demand imbalance, with the rally zone showing signs of support (marked by a rectangle).
From the supply-side perspective:
→ the move above the 13 January high could turn out to be a false bullish breakout (another one, judging by Nasdaq 100 price action over recent months);
→ price is currently hovering near the upper boundary of the existing channel.
A modest technical pullback in the coming days cannot be ruled out, although the key driver is likely to be market reactions to upcoming corporate earnings.
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