​​NASDAQ 100 touches three-month high ahead of Netflix earnings​

NASDAQ ​​​100 scales further highs

​The index of the 100 biggest US tech stocks, the NASDAQ 100, has continued to make headway so far in October, shrugging off the US inflation reading last week.

​Overall the index looks set to push higher, supported by the forecast for strong earnings from the Magnificent 7. As a group, these seven mega-cap names are expected to see earnings growth of 19% for the third quarter (Q3).

​NASDAQ 100 – IG client sentiment overview

​As the most popular market on the IG platform, it is worth looking at how IG clients are trading the NASDAQ 100. At present clients are 67% long, with buyers dominating in the lower three timelines, though since the beginning of the month we have seen a preponderance of sellers:

​IG sentiment chart

​NASDAQ 100 technical analysis – bulls in a strong place as Q4 gets underway

​The NASDAQ 100 suffered a ‘summer swoon’ in July and August, as enthusiasm for tech stocks waned after a very strong run from the lows of October.

​Early July finally saw a real correction take place, wiping almost 17% off the index and taking it to its lowest level since the end of April. Notably, however, the price held above the previous 16,970 high from late December 2023.

​Since then, the price established a higher low in September above the 200-day simple moving average (SMA), and used this as a springboard to rally. Late September saw some brief weakness but this was countered with more buying pressure in early October.

​Further gains now target the previous highs from July at 20,760.

​NASDAQ 100 chart​​