NASDAQ 100 Price Forecast – NASDAQ 100 Continues to See Upward Pressure

NASDAQ 100 Technical Analysis

We initially pulled back during the early hours on Monday in the NASDAQ 100, but it looks like the 17,850 level should offer support. Ultimately, this is an area that previously had been supported and therefore we’ll have to pay close attention to that, especially with the 50-day EMA sitting in the same neighborhood.

The NASDAQ 100 had been in a very strong uptrend for some time and now I think you’ve got a situation where we could go looking towards the $18,385 level but we are in the midst of earnings season, so we’ll have to wait and see if that has any influence. It’s worth noting though, that the session on Monday and Tuesday both are fairly quiet from a macroeconomic standpoint, especially when it comes to the US.

So, I don’t expect a lot of volatility, but we’ll have to wait and see that’s always possible. Bond markets, of course, will have to be front and center stage. So, if yields start exploding to the upside, that might put downward pressure on stocks. But really at this point in time, I think you’ve got a situation where traders are looking at each dip as a potential buying opportunity with 17,000 below as the absolute floor in the market.

The fact that we broke above the top of what should have been the previous consolidation area does suggest we’re probably more likely to go higher than lower. And of course, it’s not an equal weighted index and none of these volume weighted index tend to go down for very long. They’re just not designed to fall. So, I tend to look at this through the prism of buying on short term dips and trying to get back to the highs.

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