- The Nasdaq 100 was very noisy during the trading session on Friday, but it does look like we are in the midst of trying to stabilize.
- Stabilizing is the first step to turning things around, and it's probably worth noting that the 200-day EMA is sitting just below.
- The fact that we are forming a somewhat neutral candlestick is a good sign, but we'll have to wait and see whether or not that holds.
I think the 20,000 level below there would also be supported. So, it'll be interesting to see how this plays out. There are a lot of concerns out there about tariffs and Trump can tweet at any moment something to rock the market, which he seems to be very good at doing.
Top Forex Brokers
Is the Damage Bad?
So, I think you've got a scenario where traders are looking to determine whether or not the damage that we've seen recently is enough to calm things down. If we can turn around and take out the 21,000 level to the upside, I think you've got a real shot at this market, perhaps taking off and reaching the highs again, all things being equal.
This is a market that I still have no interest in shorting, because the Nasdaq 100 isn't built to be shorted. It's an amalgamation of 100 companies, but really, it's only like the top six or seven that matter. And as it's not an equal weighted index, if you see just a handful of companies rally, it can pull this market higher. So therefore, I almost always, almost always, look at this as a situation, am I a buyer or am I not? With that being said, it does look like we are trying to recover, so let's get a little bit of follow through and then start to think about the upside again.
Ready to trade the daily stock analysis? Here are the best CFD brokers to choose from.