As the "Trade Deal - Phase One" between the US and China comes into fruition, this piece of news could not have come at a better time for the Nasdaq (IXIC).
With the Nasdaq brushing up against it's Monthly Resistance Level of 7879.50 (Blue Line), in the midst of an uptrend, the news of a Trade Deal between two economic giants may act as a much needed tailwind to push the index higher.
Furthermore, as we enter earnings season this week, this could be a seen as a "Wild Card", as many firms will begin to be reporting 2019 Q3 results. This will be a much watched earnings season by investors, which comes after a months of volatility stemming from the US-China trade conflict dealing a blow to the global economic environment, and investor sentiment.
The key here is that if earnings surprise to the upside (or are at least not as bad as expected), especially for key tech giants such as AAPL and FB, the Nasdaq would get yet another tailwind to push it higher. If not, the index could be weighed down by investors loosing faith at this level and sending the index lower.
Nonetheless, the next few days and weeks are going to be a very important test for the Nasdaq.
@Adeelharoon, I still think that the NQ1 will continue to grind higher, especially off the back of 1) better than expected earnings, and 2) the greater possibility of the "Phase 1" Trade Deal being signed by the US and China (the later will be a nice bump for US and Chinese tech and industrials shares).
I do caution though that market volatility has been a little quiet as of late, and caution investors and traders to just keep an eye on it.