- During the month of April, we saw the NASDAQ 100 recover quite nicely, as it broke back above the 19,130 level.
- As I write the analysis for the month of May, we are threatening the 50 Week EMA, which is a significant technical indicator that a lot of people pay close attention to.
- Above there, we then have the 20,000 level, which is a large, round, psychologically significant figure, and an area that I think given enough time could be a serious problem.
However, if we were to break above the 20,000 level, then I think you have a situation where the NASDAQ 100 could really start to take off to the upside. With that being said, the market is likely to continue to be very noisy and of course driven by the latest headlines coming out of the White House, and other leaders around the world. The trade war continues to be a major factor going forward, and with that being the case, it does make a certain amount of sense that we would see a lot of choppiness, and a lot of uncertainty in this market. After all, the NASDAQ 100 tends to be much more volatile than other indices, and in this environment, it is most certainly going to be.
Top Forex Brokers
Technical Analysis
The technical analysis for the NASDAQ 100 is somewhat neutral at the moment, and it is worth noting that we bounce from just above the 200 Week EMA at the bottom, so that does suggest that perhaps we are trying to change the trend back to the upside. After all, that was a vicious selloff, but at the end of the day, not much has actually change.
Remember, a lot of emotion goes into the market, but not a lot of thought at times. Traders are starting to see that perhaps it’s not the end of the world, and therefore I do think that when the NASDAQ 100 pulls back, there will probably be buyers trying to find some type of value in the month of May.
Ready to trade our monthly forecast? We’ve made this stocks brokers list for you to check out.