Current trend

One of the leading US indices NQ 100 is showing correction dynamics in the area of 20214.0.

US stock indices continue to grow moderately, supported by the corporate reporting period that started this week. Yesterday, media services provider Netflix Inc. published financial results that showed revenue at the level of 9.82 billion dollars, which exceeded analysts' expectations of 9.77 billion dollars, while earnings per share amounted to 5.40 dollars, which is the highest figure in the company's history. In addition, yesterday, investment company Blackstone Inc. presented a report that recorded revenue growth to 3.66 billion dollars from 2.80 billion dollars in the previous quarter, while earnings per share were fixed at 1.01 dollars against the forecast of 0.98 dollars. In turn, the insurance company The Travelers Companies demonstrated record revenue of 11.90 billion dollars, exceeding expectations of 11.46 billion dollars, and earnings per share reached 5.24 dollars, while experts expected 3.66 dollars.

Bond markets are still on the rise, with the 10-year yield rising to 4.097% from 4.013%, the 20-year — to 4.463% from 4.369%, and the 30-year — to 4.401%, the highest since late June.

The growth leaders in the index are Broadcom Inc. ( 2.66%), Micron Technology Inc. ( 2.57%), ASML Holding NV ADR ( 2.50%), Vertex Pharmaceuticals Inc. ( 2.36%).

Among the leaders of the decline are CSX Corp. (–6.71%), Moderna Inc. (–4.59%), Lululemon Athletica Inc. (–3.57%).

Support and resistance

On the daily chart, the index quotes continue to correct, rising within the channel with boundaries of 21300.0–19600.0.

Technical indicators have already reversed and are holding the signal to continue buying: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO histogram is forming new ascending bars, rising in the buying zone.

Support levels: 19850.0, 18850.0.

Resistance levels: 20480.0, 21370.0.

Trading tips

In case of continued growth and consolidation of the price above 20480.0, one can open buy positions with a target of 21370.0. Stop-loss — 20100.0. Implementation time: 7 days or more.

In case of a reversal and continuation of the corrective decline, as well as consolidation of the price below the support level of 19850.0, sell positions with a target of 18850.0 will be relevant. Stop-loss — 20200.0.