NASDAQ 100 Forecast: Pulls Back Right into Support Zone

The NASDAQ 100 had a rough trading session during the day on Thursday, reaching down towards the 10,500 level. What is going to make this even more difficult is the fact that Netflix is getting hammered after hours, so that of course will play on the NASDAQ 100 and perhaps throw the market into a hissy fit. Nonetheless, there is a lot of support underneath and I think that even if we do spend the entirety of Friday falling, there is a buying opportunity given enough time. Granted, it may be on Monday but clearly, we are in an uptrend and unless something has changed drastically, and it has not, this is a market that will find buyers underneath.

We have the bottom of the up trending channel, and then of course the 10,000 level which is psychologically important and will continue to be a major factor. Underneath there and approaching rapidly as the 50 day EMA, which of course is a technical indicator that a lot of longer-term traders pay attention to. It is not until we break down below there that I even entertain the idea of the NASDAQ 100 being in trouble, because it has the benefit of being comprised of everybody is favorite “cult stocks.”

Going forward, I do believe that we will revisit the 11,000 level but Friday could be a little bit tough. Look for value, and buy those dips because that is the only thing that does work in this market. Until something changes rather drastically, that will be the way going forward. I have no interest in trying to fight the trend, despite the fact that I do not agree with some of the rosy projections that we see around the world. Personal opinion is not something that you should use to trade with, because price is the only thing that matters. I know a lot of you are newer traders, and it is even difficult for those of us who have been around, but there is a chorus of people out there that keep stomping their feet complaining that the market is not “doing what it is supposed to”, but that has been the case for over a decade. It is the game we play, and it is that simple. Stock markets cannot fall because the Federal Reserve will be there to catch it. Granted, we may get the occasional wipeout, but that is only going to be a buying opportunity for those who have the discipline to practice money management.

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Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.