NASDAQ Weekly Price Forecast – NASDAQ 100 Continues to See Volatility

NASDAQ 100 Weekly Technical Analysis

The Nasdaq 100 has spent most of the week falling, but at this point in time it does look like we are starting to step in and trying to support the market on Friday. The week being a negative one is not a huge surprise considering that we have gotten so aggressive to the upside. In other words, we need to work off a lot of the excess that we had seen previously.

That being said, I think you’ve got a situation where you have to look at this through the prism of a market that’s very much in an uptrend but might have to work off some of the excess noise. The 18,500 level above is a major resistance barrier, but I do think we break above that given enough time. Clearly Wall Street has a proclivity to buy every dip that they can, as the have done for some time now. This is a market that is almost impossible to short any time soon. Remember, it is an index that isn’t equally weighted, and therefore we have to watch the same handful of companies.

And therefore, I think you’ve got a situation where you just continue to see upward momentum. I do think that eventually we have a situation where traders will look at this as just an answer to the Federal Reserve cutting later this year. That certainly seems to be the case, and I just don’t see an argument for the Fed not cutting, and even though they may not cut as quickly as they wanted, it’s obvious to me that Wall Street has made up its mind.

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