Nasdaq Forex Signal: Sideways Action

Potential signal:

• Anywhere near the 21,300 level is a buying opportunity.
• I would have a stop at 21,000 with a target of 22,000.

NASDAQ 100 did initially try to rally during the trading session on Friday, but we have given back quite a bit of the gains as we now look like we could drift to a somewhat lower close on Friday. Keep in mind that non-farm payroll number came out a little bit of a mixed bag. It came out a bit lower than anticipated headline number, but some of the internals were actually pretty hawkish for the Federal Reserve, and therefore I think it makes a certain amount of sense that traders are a bit confused.

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Furthermore, we are trading during the Trump presidency, and over the weekend, it would be somewhat surprising if he didn't tweet or say something to make the markets nervous. So, with that being the case, why would you hang on to this position heading into the weekend, at least not right now, not with so many potential tariff issues?

Still Plenty of Support

That being said, I do think that there is plenty of support underneath with the 50 day EMA coming into the picture. And then again, the 21,000 level underneath offering support. The market of course has been very bullish for some time, but now we are going sideways. And that makes me wonder whether we are just simply digesting some of the excess gains. If we can turn around and break above the 22,000 level on a daily close, then we may see the NASDAQ 100 go higher. But right now, I think it's more or less just sideways digestion and a market that you are buying dips in, not necessarily getting aggressive one way or the other, at least as things stand at the moment. With that being said, I think this remains a buy only market, but it is possible that if we were to somehow race below the 20,000 level, then maybe things change. But as things stand right now, I still like the NASDAQ 100, I just recognize we have some work to do.

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