NDXUSD

Today’s ADP employment data and ISM Services PMI will provide the most important clues about the future direction of the Fed's monetary policy. The "Goldilocks" scenario that the markets are looking for (moderately slowing employment and service sector) could trigger a strong relief rally in technology stocks by increasing hopes that the Fed may start cutting interest rates. On the other hand, data that comes in much better than expected could trigger concerns of "higher rates staying longer," while significantly worse data could evoke fears of a "hard landing," creating strong selling pressure on the index. For the NASDAQ Index, which is priced near the 25,357 level, support is at 25,132 and resistance is at 25,562.