NASDAQ 100 Price Forecast – NASDAQ 100 Continues to Grind in a Box

NASDAQ 100 Technical Analysis

The NASDAQ 100 dropped slightly during the trading session on Monday, as we continue to see a lot of back and forth after a huge move. The 50 day EMA sits just above the 17,775 level, an area that I think is massive support at the moment.

On the upside, I think the 18,500 level is a massive resistance. I would not be surprised at all to see the NASDAQ 100 bounce around in this area for a while because quite frankly, we went straight up in the air for quite some time. In general, this is a market that I think a lot of people look at this market through the prism of trying to find a little bit of value, but sometimes you get a little bit ahead of yourself and you have to work off the momentum.

Earnings do start late this week with the banks initially, but eventually will get around to the technology companies and that could have a significant amount of influence. However, the biggest influence of course is going to be whether or not the Federal Reserve is going to loosen monetary policy, which quite frankly is by far the biggest thing that Wall Street worries about since the great financial crisis.

If we were to break down below the support level, then it’s possible that we could go looking toward the $17,000 level for support. But either way, I have no interest in trying to short this market. I think it is a market that continues to go higher, eventually. That being said, it may take some time spinning our wheels here to build up the necessary momentum.

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