The Nasdaq 100 is near 25,000.00 as of this writing in futures trading. The Nasdaq 100 was able to turn in a rather dramatic day of results on Monday, when it gapped lower via futures trading and then found investors reverse and pump buying orders into the index. The Nasdaq 100 for all the contortions that have been demonstrated the past two weeks because of the Iranian war is actually still working.
Day traders who are nervous because of current global conditions cannot be blamed, but speculators and investors who are participating in the Nasdaq 100 have brought the index from a depth of nearly 24,000.00 upon opening yesterday with a steep gap lower, back to the 25,000.00 level almost within 24 hours.
News Flow and Dynamic Conditions Present
Traders who do want to pursue the Nasdaq 100 and are trading merely on technical charts are certainly allowed the freedom of choice. But paying attention to developments from the Iranian war situation may be deemed important by many speculators. However, there is an important element to consider, a lot of the fear regarding the circumstances in the Middle East may start to become risk factors that are accepted, meaning that trading conditions may become more calm as people grow more relaxed in the markets.
Behavioral sentiment barometers will be important today and the remainder of the week. The Nasdaq 100 results will be reflected in price values in seemingly unrelated assets like the price of WTI Crude Oil. If commodity prices in the energy markets remain calm, the Nasdaq 100 may reflect a sense of tranquil trading too. The move higher since yesterday’s lows recaptured what has been a well-practiced price range. The Nasdaq 100 is actually near values it was one week before the Christmas holiday almost three months ago.
Nasdaq 100 Near-Term Wagering
Any trader willing to wager on the marketplace under the present conditions needs to understand there are risks. Trading needs risk taking tactics that protect against spikes, because a sudden news development from the Iranian war could cause fast price action.
The Nasdaq 100 may be viewed as oversold by some participants and this could also lead to speculative buying.
The 25,000.00 level can be viewed as an important barometer today.
If the 25,000 juncture is sustained with values above, this will be a sign big players see opportunity in upside.
But day traders will need to be nimble in the short and near-term because conditions can turn volatile at any moment.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 25,030.00
Current Support: 24,980.00
High Target: 25,300.00
Low Target: 24,790.00