NASDAQ Price Forecast – NASDAQ 100 Falls After CPI

NASDAQ 100 Technical Analysis

You can see that we initially did try to rally during the trading session here on Wednesday, but the CPI numbers came out a little bit hotter than anticipated and therefore we’ve seen a bit of a knee-jerk reaction to the downside. The question now is whether or not it sticks. I don’t think it does. I don’t think it’s changed that much. I just think that a lot of algos got caught on the wrong side of this trade.

The 50 day EMA is going to offer a little bit of support and we already start to see a little bit of a balance here. So I suspect that by the end of the day, we will probably see the market try to recover. Whether or not it can remains to be seen. And I do think at best, we’re probably looking at sideways trading. I don’t necessarily think that we’re going to explode to the upside.

It would be a signal that we are going to work off some of the excess froth, something that is desperately needed at this point. The 17,775 level is an area that I think continues to be massive support. And as long as we can stay above there, I think we’re okay. If we do break down below there, then it’s possible that we need to look at this more or less through the prism of a pullback to refresh the uptrend, but I don’t think things have changed so much that you need to be overly worried about it if you’re bullish.

This may in fact end up being a nice short-term buying opportunity. Above, I believe that the $18,500 level is a significant barrier that you need to pay close attention to, as it is massive resistance. So, all things being equal I think we go sideways and start to bounce a little bit back into our consolidation range.

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