- The NASDAQ 100 initially tried to rally during Wednesday’s premarket trading session, but gave back those gains fairly quickly.
- However, it is probably worth noting that we are right at a major support level, and the damage during Wednesday’s trading session was minimal at best.
- Further increasing the possibility of some hope is the fact that US 10-year interest rates have fallen slightly, giving you a chance to breathe a sigh of relief.
At the moment, the 50 Day EMA is sitting in the same area, which is of course the 21,000 level, an area that was important and is a big, round, psychologically significant figure that many people will be watching. At this point, I think it’s probably only a matter of time before we see a bit of a bounce, especially with accelerated growth in the United States. However, I also understand that there are a lot of concerns about the bond market, so that’s probably the only thing that I think is still causing a lot of trouble.
Technical Analysis
At this point, the technical analysis for this Nasdaq pair is a little mixed, but it would make some sense as we head into the new year with a lot of questions to ask, but I think long-term it’s very likely that the NASDAQ 100, like other indexes in the United States, should continue to experience buying pressure as the Trump administration should be very pro-business market.
We can break above the high of Wednesday’s trading session, and then I think that allows this market to rise towards the 21,500 level. However, you also have to keep in mind that technical analysis will likely continue to see a little bit of sideways action because we’ve seen such a massive move up, and at this point I think there are a lot of nervous traders out there. However, it’s also worth noting that we’re most definitely in an uptrend, and that hasn’t changed.
Even breaking down from here, the 20,680 level has a little bit of a “double bottom” that could come into the picture, followed by the 20,000 level below. I have no interest in shorting the NASDAQ 100, but I would revisit things if we could get all the way down to that 20,000 level. The number of jobs that come out on Friday of course has a big impact on what happens next, but keep in mind that these reactions are usually short-term.
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