NASDAQ Forecast: Looks for Buyers at Support

• The NASDAQ 100 initially fell a bit during the trading session on Tuesday but has turned around to show signs of life.
• At this point, it’ll be interesting to see whether or not the 17,775 level gets broken above, because that would be a very bullish sign.
• Ultimately, the NASDAQ 100 has been very bullish for some time, and the recent action has been more or less sideways and therefore it could be thought of as an opportunity to work off some type of froth in a market that had gotten way ahead of itself.

The Consolidation Area

The 17,775 region is support, and at the same time the 18,500 level above is significant resistance. While we are at the extreme bottom of the consolidation area, certain value hunters would probably come into the market to try to pick up “cheap contracts.” That being said, if we were to break above the 50-Day EMA, then I think you would see more FOMO trading coming into the fold, like we had seen previously. In general, this is a situation where we continue to see a lot of noise, but I think sooner, or later people were going to jump into the stock market and try to pick up the handful of stocks that tend to drive the NASDAQ 100 higher.

Top Regulated Brokers

1

Get Started 74% of retail CFD accounts lose money Read Review

If we were to break down below the 17,500 level, then we could see a significant amount of selling pressure to send this market looking toward the 200-Day EMA, which would have markets in general selling off in a huge “risk off” type of situation around the world. Ultimately, I do think that we eventually go higher but if we do break down from here, it will only become a more interesting area to get involved, but you need to be patient and let the market tell you when it’s time to start bowling. Right now, it doesn’t have the momentum to the upside, but as soon as we get that, I think we have an opportunity to join what has been a longer-term secular uptrend, and all it would take is a few choice words from a member of the Federal Open Market Committee suggesting that loose monetary policy is coming.

Ready to trade the NASDAQ 100 Index? Here are the best CFD brokers to choose from.