The NASDAQ 100 has fallen hard during the trading session on Monday, as we continue to see a lot of negativity. The 50-Day EMA is currently rising higher, and it should show a certain amount of support. However, if we break through there, then the next target will more likely than not end up being the 12,500 level.
The NASDAQ 100 of course is very susceptible to noise as there are only 7 stocks that move the thing for the most part, so you would do well to follow Tesla, Apple, Microsoft, Alphabet, and all of the usual suspects. As interest rates continue to show signs of strength and central banks around the world look to be very tight with monetary policy, that does tend to work against the value of these types of companies, so it all ties in together quite nicely. It’s also worth noting that we close at the very bottom of the candlestick, so it looks like we are ready to test the major support level in the form of the 50 Day EMA and the previous noise between there and the 12,500 level.
Strategies for trading Nasdaq today
If we were to break down below that level, then it’s likely that the market could go to the 12,000 level. On the other hand, if we were to turn around and reach higher, the 200 Day EMA sits just below the 13,500 level, and therefore it should offer a bit of resistance, therefore I think it’ll take a lot of effort to get above there. If we can break above all of them, then fine, we will go much higher. This week should be crucial for the markets, and by the time we take off for the weekend, we should have a good idea as to where things are going to end up.
- I would anticipate a lot of noise more than anything else, so be aware of the fact that the markets are going to be difficult to navigate going forward.
- We continue to see a lot of headline noise cause headaches for most traders.
- The next couple of days are going to be difficult and crucial, so make sure you keep your position size reasonable.
- I do believe the we will get a longer-term answer, but we need to let the market tell us what it wants to do.
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