NASDAQ 100 Forecast February 9, 2016, Technical Analysis

The NASDAQ 100 gapped lower at the open on Monday, breaking well below the 4000 handle. Because of this, the market looks as if it is ready to continue going lower as we did up all the way down at the 3900 level. The NASDAQ 100 tends to move much quicker than many of the other indices in the SH, and with the massive selling that we have seen worldwide, it makes sense that the NASDAQ 100 would struggle quite a bit. With this being the case, we are sellers of short-term rallies as the gap should be resistive, and of course there is the 4000 level, which should be psychologically significant.

On the other hand, we could just simply break down below the 3900 level, and that would be reason enough to start selling as well. Keep in mind that the NASDAQ 100 companies tend to be very sensitive to the rest of the world, especially Europe. There are basically going to be tech based international conglomerates that are highly sensitive to the way markets are behaving in other parts of the world.

Ultimately, we don’t really have a scenario in which we are willing to start buying this market, unless of course we had some kind of bullish candle on a longer-term chart that allows for us to feel little bit more comfortable about going in that direction. At this point in time, we would also try to see other buyers in other markets around the world as well, as it allows us to feel that the entirety of the market is turning around. Until that happens, the NASDAQ 100 will continue to struggle in general, as it does tend to be a bit more sensitive to the whims of the international markets than the S&P 500 or perhaps the Dow Jones Industrial Average. Ultimately, this is a market that should continue to sell and sell again, and continue to extend itself to the downside going forward as the bearish pressure builds up around the world, and there is so much uncertainty in general.