US indices rallied yesterday with tech shares being top performers. Nasdaq-100 index (US100) gained almost 3.5% yesterday while S&P 500 and Dow Jones added 2.65% and 1.86%, respectively. As Wall Street earnings season for Q3 2022 began last week, traders may expect US indices to have more headlines to swing on in the coming weeks, especially as the US economy seems to be heading towards a recession and profit warnings from companies will be double important. While a key week of the earnings season, which hosts releases from US mega-cap companies, will be the next one, this week also includes some interesting tech reports. Netflix (NFLX.US) will report earnings today after the close of the session while IBM (IBM.US) and Tesla (TSLA.US) will release their Q3 financials tomorrow.
Taking a look at the Nasdaq-100 chart (US100) at H4 interval, we can see that the index is in the midst of an upward correction but its scale has not yet matched the scale of the biggest correction in the current downward impulse. However, a break above the upper limit of a local market geometry at 11,470 pts would, at least in theory, signal a bullish trend reversal and a chance for a bigger upward move. In such a scenario, the next potential resistance level to watch can be found at 38.2% retracement of a recent downward impulse (11,725 pts area).
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Source: xStation5
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