- The NASDAQ has been a little bit positive in the early hours of Friday as we continue to try to find some type of floor in a market that's been extraordinarily strong for months.
- We are in a pretty significant up trending channel and although we are not at the support line or the uptrend line, the overall momentum is to the upside, so you have to pay close attention to that.
- The hammer that formed during the trading session on Thursday gives me more of an upward bias than I had the day before. But overall, I don't want to short this market anyways, because Nasdaq 100 will continue to move on to the idea of loose and easy monetary policy coming out of the Federal Reserve.
A Potential Target, and the Channel
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The 25,000 level is a potential target at the moment. And just about 500 points above is something that we could see in the next couple of weeks. But we also could get a little bit of a pullback, which would make a certain amount of sense considering that there is a major uptrend line that has yet to be touched in the last month or so. And of course, sooner or later, markets do need to pull back in order to offer enough value for people to be willing to jump back in.
If we were to break down from here, the uptrend line coincides roughly with the 24,000 level. So that is something that I'd be watching very closely. A breakdown below there opens up the possibility of a move to the 50 day EMA. And then finally, what I think is closer to the bottom of the overall trend at the moment, 23,000.
To the upside, if we were to break above the 25,000 level, then we could continue to see more money flow into this market. But regardless, it's obvious at this point that the Nasdaq 100 is most certainly bullish overall.
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