Current trend

The leading US tech index, Nasdaq 100, corrects at 15575.0 amid positive investor expectations of a slowdown in inflation.

The June report, which reflected the slowdown in the US consumer price index to 3.0% from 4.0% YoY, acted as a catalyst for a change in dynamics in the stock market: investors now expect that the US Federal Reserve may return inflation to the target level of 2.0% by the end of the year. According to reports from the Chicago Mercantile Exchange (CME Group), futures estimate the likelihood of a 25 basis point hike in interest rates at 96.1%. The regulator convinced the markets that the “hawkish” rhetoric would put decisive pressure on price growth, and then the Fed may focus on fighting the recession.

The US bond market is predominantly in the green, with popular 10-year US Treasuries trading at 3.817%, down 0.05% from Friday’s close. Global 20-year papers are around 4.115%, up 0.19% from last week.

The growth leaders in the index are Copart Inc. ( 3.13%), DexCom Inc. ( 2.49%), Airbnb Inc. ( 2.32%), and Intuitive Surgical Inc. ( 2.03%).

Lucid Group Inc. stands out among the decline leaders. (–5.90%), Warner Bros. Discovery Inc. (–5.34%), Moderna Inc. (–4.15%), and Analog Devices Inc. (–3.18%).

Support and resistance

On the daily chart, the trading instrument is moving within the global ascending corridor with the boundaries of 15800.0–14300.0, preparing for continued growth.

Technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator are kept at a considerable distance from the signal line, and the AO histogram forms corrective bars in the buying zone.

Resistance levels: 15730.0, 16300.0.

Support levels: 15300.0, 14700.0.

Trading tips

Long positions may be opened after growth and consolidation above 15730.0 with the target at 16300.0. Stop loss — 15500.0. Implementation period: 7 days or more.

Short positions may be opened after the price drops and consolidates below 15300.0 with the target at 14700.0. Stop loss — 15600.0.