- The NASDAQ 100 gap lower to kick off the trading session on Thursday, showing a continuation of the negativity that we had seen recently.
- Now that we are well below the 11,000 level, it’s likely that we will continue to go much lower.
- Ultimately, I think this is a market that every time at rallies, you will have to be looking for signs of exhaustion to get short again.
- After all, the NASDAQ 100 will have to keep itself somewhat contained heading into the jobs number on Friday that obviously has a major influence on where we go next.
With Jerome Powell slamming the hammer down on any of the hope of a softening Federal Reserve during the trading session on Wednesday, it looks as if the markets will continue to see downward pressure. Because of this, it’s likely that we will see a scenario where the market still favors the downside, but we might get a little bit of volatility to the upside. This could be especially true if the jobs number comes out softer than anticipated, because traders are hoping for bad news to force the Federal Reserve to loosen its monetary policy or at least pause a bit.
I Have no Interest in Buying the Stock Market
Naturally, this is complete nonsense, and the Federal Reserve is already said that they are nowhere near trying to loosen the monetary policy and believe that they may have to stay tight for longer than anticipated, and possibly even at a higher rate than anticipated. This is like a death sentence for technology stocks, as venture capital has a big part to play in what technology ends up doing. Furthermore, most of the stocks have a an extraordinarily high multiple, and Wall Street has been trying to bring them down for some time.
If we break down below the recent low, then we could sell off quite drastically and go looking to reach the 10,000-level given enough time. The market turning around or breaking above the 11,000 level will simply invite shorting from a higher level, perhaps somewhere near the 11,500 level where the 50-Day EMA currently sits as well. I have no interest in buying the stock market, because even if we were to change the trend suddenly, we have a long time before it would be prudent to start buying as there is a lot of selling pressure to chew through.
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