US indices, especially tech sector indices, had a solid run over the past few weeks. Nasdaq-100 (US100) gained around 20% between January 6 and February 2, 2023. However, this rally may have come to an end yesterday evening. Earnings releases from Apple, Amazon and Alphabet. All three companies dropped in the after-hours trading, following a rather disappointing earnings release. This has led to a massive reversal on US100 with the index dropping around 2.5% off yesterday's highs. Index pulled back and tested the upper limit of a recently broken upward channel today. The first test turned out to be a failed one and now an attempt to launch a recovery move can be observed. The index could become more volatile around 1:30 pm GMT when US NFP report for January is released. If it shows a weakish growth, it could be seen as a potential reason for Fed to become more dovish and, in turn, indices may benefit. Wage growth will also be on watch with lower readings being rather equity positive. Should the index resume slide and drop below the aforementioned limit of the channel, the next support to watch will be the lower limit of local market geometry in the 12,492 pts area.
Source: xStation5
