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NASDAQ 100 Price Forecast – NASDAQ 100 Continues to Look For Upward Momentum

By:
Christopher Lewis
Published: May 29, 2024, 13:08 GMT+00:00

The Nasdaq 100 continues to see a lot of noise, but at this point it looks like we are content to simply drift back and forth. It does generally favor the upside but struggles to hang onto buying pressure.

In this article:

NASDAQ 100 Technical Analysis

The NASDAQ 100 pulled back just a bit during the early hours on Wednesday, as we continue to see a lot of hesitation toward the highs. That being said, what we’ve basically come down to is trying to figure out what Nvidia is doing taking most of the order flow out of the markets, which of course, as I’m sure you can imagine, normally ends pretty disastrously when the bubble becomes basically one stock. This does cause increased volatility and I think that’s just the way this is going to be. Nvidia is overpriced and has now taken up so much of the flow that almost every day we get a gamma squeeze.

A gamma squeeze is when dealers have to cover positions in the options market. So, what happens is Nvidia shoots straight up in the air and nobody buys anything else. That is a bit of a simplification, but that’s basically what’s been going on for several weeks now. So, with that being said, the NASDAQ 100 needs some of the other big ones to turn around. Apple started to during the session yesterday, but it really comes down to whether or not the rest of them will follow right along. Now, that being said, you clearly can’t be a seller of this market, and you do look for short-term dips as buying opportunities, but as far as hanging on to a bigger move, it’s probably not going to be quite so possible in this environment.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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