Price movement AEX Index
It is Friday, February 23, and the AEX is at 855, the same level as last week.
Above is the AEX chart since August 2020. It starts with the significant recovery after COVID came somewhat under control. The peak of 830 in November 2021 was followed by a sharp rise in inflation and Russia's invasion of Ukraine, causing the AEX to drop to 615 by October 2022. From that level, new patterns can be determined. Under the leadership of the tech sector, a strong upward trend has been established, with a target of 950 for the AEX.
Although there has been little change overall, much has happened over the past week. Until Wednesday evening, the AEX was correcting and hit a low of 843.50. As mentioned in the previous update, the temporary decline was expected and fit perfectly into the pattern. The correction could have gone down to 830, but on Wednesday evening, after the U.S. market closed, Nvidia's earnings were released.
This AI chip supplier reported results and updates that exceeded every expectation. The anticipation was already high and priced into the stock, but Nvidia managed to surpass these expectations with astonishing numbers. This caused the markets to surge like a rocket, demonstrating once again that tech companies remain strong and that the end of their prosperity is not yet in sight.
What is the expected trend for the AEX Index?
In addition to the AI hype, it's worth keeping in mind that interest rates are high and trade restrictions with China are still in place. Once interest rates can come down a bit and companies like Nvidia can do more business with China, we can expect even more. While we are not there yet, it is clear that the tech sector's influence is growing, and much more can be expected under its influence. The algorithm indicates that we can expect an AEX of 950 this year. The first target is 875, followed by a slight correction and then moving towards the 2024 target of 950.
The TradingStrategie portfolio initially took advantage of the correction within the upward trend but has exited the short position due to the lack of further decline and the strong increase. The algorithm has now taken a long position.
Backtrack: Read our outlook on the AEX Index from February 16, 2024
Price movement in the Nasdaq
Below is the Nasdaq 100 chart since August 2020. The Nasdaq is also at the same level as last week. The same applies to the Nasdaq and the AEX which is why the algorithm has also taken a long position here. The target for the Nasdaq has also been raised. The algorithm expects a similar pattern as with the AEX. The Nasdaq can rise to 19,000, followed by a corrective phase, and then move on to the new target 2024: 22,500.
Important stock market news for the week of March 4, 2024, to March 8, 2024
In the upcoming trading week, we expect inflation figures from the US on Thursday afternoon at 2:30 PM and the production purchasing managers index on Friday afternoon at 3:45 PM. Both events could cause volatility, but there are no other significant macroeconomic events on the agenda.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' insights and experiences. They are therefore for educational purposes only.
