Nasdaq 100 crashes on soaring yields – back to 50 WMA?

By Admiral Markets

The Nasdaq 100 have led stock markets lower at the end of the week as investors continue to fret about rising bond yields. The index which comprises the largest technology companies listed on the NASDAQ Exchange has seen a huge investor sell-off in recent weeks.

The index fell more than 3% yesterday, with heavyweights Amazon, Apple and Netflix all falling even more. Tesla was down 7% at one point. Investors are concerned about rising bond yields which shows investors are preparing for higher interest rates.

Higher rates tend to hurt growth sectors like technology the most.

Source: Admirals MetaTrader 5, NQ100, Weekly – Data range: from Apr 6, 2014, to Mar 18, 2021, performed on Mar 18, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

In the long-term, monthly price chart of the Nasdaq 100 above it’s clear to see the uptrend. Currently, the price is struggling to bounce from the 20-period (blue) exponential moving average as it did last November.

If the price does manage to break through this level, we could see a correction back down to the 50-period (red) exponential moving average. However, if price can stay above the current moving average there may be another attempt for a new record high.

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By Admiral Markets