The NASDAQ 100 continues to grind back and forth at the moment, as we are waiting for the results of the PPI and CPI numbers in America. This market continues to see a lot of indecisive behavior.
Top Regulated Brokers
Nasdaq 100 Holds Its Range as Inflation Data Takes Center Stage
The NASDAQ 100 has been a bit choppy and slightly negative during trading here on Wednesday, as traders, I think, for the most part, are probably looking ahead to CPI on Friday because that will be the last major inflation reading that we get before the next Federal Reserve interest rate decision.
The 50-day EMA sits just below, offering a bit of support. For the last couple of weeks, we've actually been in a range between roughly 29,600 and 29,000. I don't really see much changing between now and Friday unless maybe the PPI numbers come out drastically off the mark on Thursday, or we get a headline coming out of the Middle East that rattles everything.
But the market seems to be increasingly numb to those Middle Eastern headlines
Oil screams higher, and there is a little bit of negativity here, but it seems to be forgotten pretty quickly. So, with that being said, this is a market that I think stays tight. This market will be waiting for some kind of clarity before acting. With this, we could be in a “wait-and-see” mode at the moment, and therefore, short-term trading is probably the majority of what we are seeing.
We have a very live interest rate decision next week on Wednesday coming out of the Fed, currently priced at about a 60% chance of a rate hike. So, we'll see how that plays out. But currently, it looks like we're just grinding away in a fairly predictable range. Short-term traders might be attracted to this market for that very reason.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.