Traders on the Nasdaq 100 Index Futures (CME: NQ) adopted a wait-and-see attitude before the release of key US CPI and core inflation data. The previous week ended with a three week winning streak, and traders digested labor market reports as well as purchasing managers' indices in the service and manufacturing industries.

The probability of the Federal Reserve raising interest rates by another 25 basis points in the upcoming May decision is 71%, as US interest rate futures are now priced. If borrowing costs are advanced, the Nasdaq 100 index futures may be dragged down, thereby suppressing the returns and growth prospects of medium-term stocks.

Specialized

The Nasdaq 100 index futures are showing an upward trend, with prices moving higher than the 100 day moving average. The support level and resistance level are at levels 12635.00 and 13345.00, respectively.

After rejecting resistance levels, the index fell to a 50% Fibonacci retracement level of 12990.00 points. The 50% retracement level used as a support level for the second time is likely to be the success or failure level of NQ traders.

If the price trend falls below the high trading volume level, it may indicate the failure of bullish traders who hold this level as support for bearish traders. If bearish promises go down, they may be interested in paying attention to the 12635.00 level.

Alternatively, if the 12990.00 level is used as a support level, bullish traders may be tempted to move the index higher and designate the 13345.00 level as a possible level of interest.

summary

The main driving factor for the rest of this week's NQ price trend will be the market's response to inflation data. If inflation gradually decreases, in line with the downward trend of ISM manufacturing and service PMI, as well as the sluggish labor market, and if expectations of further interest rate hikes fade, the Nasdaq 100 index futures may experience some favorable winds against the backdrop of rising risk appetite.