NASDAQ 100 Forecast: Index at Highest Again

Christopher Lewis

The way to look at this market is that you are simply looking for opportunities to get long, and completely ignore selling opportunities.

The NASDAQ 100 rallied slightly during the trading session on Thursday in what was relatively quiet trading. As the market has broken above the 14,000 level, it is likely that we will continue to see buyers jump in and, if we can break above the top of the candlestick for the trading session, it is likely that the 14,500 level would be the next target. On the other hand, we could pull back into the previous consolidation and try to find support underneath yet again.

Liquidity is the only thing that matters in the stock market, and the Federal Reserve is out there to give it. I know that sounds a bit cynical, but that has been the reality for 13 years. With that being the case, it does make sense that we would see a “buy on the dips” mentality going forward, and as a result I think what we are looking at is a scenario in which you are simply looking for a little bit of value. However, you can also make an argument for a breakout to the upside, and if we do break out to the upside, it is likely that we could go looking towards at least the 15,000 level over the longer term.

Keep in mind that this is earnings season, so thatg something that could cause a lot of volatility in this index as well as many others. The interest rates stabilizing has helped some of the larger technology companies, which helps the NASDAQ 100. The 13,333 level continues to be major support based upon the previous inverted head and shoulders, and based on the fact that the 50-day EMA is approaching that level as well. Because of this, it is likely that the floor in the market will be in that area, plus we also have an uptrend line that is starting to race towards that area as well. I think it is only a matter of time before the buyers would come in and pick up value as it occurs. So the way to look at this market is that you are simply looking for opportunities to get long, and completely ignore selling opportunities.

NASDAQ 100

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.

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