The Nasdaq 100 has had a relatively rough patch of trading the past few days, this after touching a high around 23,750.00 last Thursday, because as of this writing the index is near 23,443.00.
In early trading this morning the Nasdaq 100 is near the 23,443.00 ratio via futures betting. The Nasdaq 100 had a very good day in the sun last Thursday when a high of 23,750.00 was flirted upon, but afterwards faced some selling pressure as a mix of caution and perhaps profit taking took place. The big U.S indices have all produced the look of treading water in recent days, this as the U.S Non-Farm Employment Change data awaits tomorrow.
It is all about timeframes and perspectives for speculators and investors in the Nasdaq 100. Tuesday’s low which cascaded beneath 23,000.00 likely caused day traders to shudder if they were pursuing bullish momentum. However, if the selling was used as a touchstone regarding technical support and then caused buying by speculators who believed a reversal upwards would be seen, then positive results may have been attained.
23,000 as Support as 24,000 is Targeted Psychologically
Reactive trading as sentiment awaits the next big round of impetus in the Nasdaq 100 will be obvious. Since Tuesday’s dive lower the index has been able to produce a solid gain and in early futures trading this morning the Nasdaq 100 is sustaining the gains made. Large institutions may be willing to bet on tomorrow’s jobs data outcome before the statistics are known. If the results from the Non-Farm Employment Change are stable tomorrow this could helped solidify price action in the Nasdaq 100.
The notion that 23,000.00 is now acting as support while 24,000.00 and record values is the target is easy to understand. However, day traders may not be able to take advantage of this massive trend upwards if it does develop. Using take profit orders to cash in money that has been made remains a safe way of approaching the Nasdaq 100 before virtual profits disappear. The index moves fast, too much leverage is dangerous. Shifting behavioral sentiment remains evident because many large players are anxious.
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Federal Reserve and U.S Treasuries Impetus
In other words the Nasdaq 100 is not guaranteed to move up so easily today and tomorrow. Financial institutions will ultimately propel the Nasdaq 100 and other indices, but they like everyone else want greater insights regarding interest rates from the Federal Reserve.
- The interest rates via the Fed effect Treasury Bond yields.
- Yields matter in the near and mid-term even for financial institutions.
- While it appears large trading houses believe the Nasdaq 100 will rise over time, and support levels look somewhat durable, speculators should be careful.
- The Nasdaq 100 is trading at a level it traversed in the last week of July.
- Choppy waters have had to be survived as investors and day traders eye higher values.
- Yes, you can sell the Nasdaq 100 too and look for downside, but that has to be done with supreme risk taking tactics.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 23,460.00
Current Support: 23,420.00
High Target: 23,570.00
Low Target: 23,190.00
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