Current trend

One of the leading US indexes NQ 100 shows corrective dynamics, being at around 15005.0 against the background of the recent stress test of the banking system which was carried out by the US Federal Reserve. The results showed that virtually all major lending institutions are able to weather a severe recession in an economy with current cash liquidity. Confidence in regional banks is not as high, but in case of new shocks, mechanisms of operational support are already in place.

Investors were evaluating yesterday's data on Gross Domestic Product (GDP) for the first quarter, which reflected the growth of the index by 2.0%, which is higher than the 1.3% expected by analysts. In addition, the focus of market participants is the statement of the President of the Federal Reserve Bank (FRB) of Atlanta Raphael Bostic, who noted the need to keep the cost of borrowing unchanged at the July meeting, as inflation expectations are now below June levels.

The US bond market today is predominantly in the "red zone": 10-year Treasuries are traded at a rate of 3.843%, which is 0.34% lower than yesterday's close, and 20-year ones are traded at 4.104%, having lost 0.36%.

The growth leaders in the index are Lucid Group Inc. ( 7.17%), PACCAR Inc. ( 2.39%), Marriott Inc. ( 2.03%), American Electric Power Company Inc. ( 2.01%).

Among the leaders of the decline are Micron Technology Inc. (-4.09%), Atlassian Corp Plc. (-3.15%), MercadoLibre Inc. (-3.00%), Marvell Technology Group Ltd. (-2.83%).

Support and resistance

On the daily chart, the index quotes continue to trade within the global ascending corridor with the boundaries of 15800.0-13800.0, preparing for continued growth.

Technical indicators continue to hold a buy signal, which again begins to strengthen: fast EMAs on the Alligator indicator are kept at a considerable distance from the signal line, and the AO histogram forms new corrective bars, being in the buying zone.

Support levels: 14700.0, 14230.0.

Resistance levels: 15200.0, 15800.0.

Trading tips

If the asset continues growing locally and consolidates above 15200.0, long positions with the target at 15800.0 will be relevant. Stop-loss — 15000.0. Implementation time: 7 days and more.

If the asset continues declining and the price consolidates below 14700.0, short positions can be opened with the target at 14230.0. Stop-loss — 15000.0.