The NASDAQ 100 Index experienced a dip during the early hours of Wednesday before making a comeback, finding significant support at the 13,100 level. This trend is not new as the market has been squeezing for the past three days. The current state of affairs is not unexpected, considering that Friday is Good Friday, and the stock markets in the United States will be closed. This holiday has caused a lot of hesitation among investors, and they are choosing to stay away from the market.
All Eyes on the NFP Announcement
- The upcoming Non-Farm Payroll announcement that comes out on Friday has added to the concerns.
- Traders have opted to stay away from the market this week, given the possibility of significant market shifts without the chance to react to them.
- This sentiment is understandable, considering that the market is a little overextended at the moment.
The NASDAQ 100 also has to deal with further noise coming from earnings season and other leads, plus the fact that the blackout period for companies to buy their stocks to lift prices is upon us. All these factors make for an uncertain market, and volatility tends not to do good things to the NASDAQ 100. A slight pullback from here would make sense, but it is worth noting that there is still a lot of support from buyers underneath. In this scenario, a drop to the 12,850 level seems likely, given the resistance observed there previously.
Breaking above the 13,250 level would be significant, opening up another 500 points of the upside, and further strengthening the uptrend observed over the past few weeks. However, a breather is essential to give the bulls a chance to collect more buyers along the way. This makes a lot of sense, as momentum eventually drops, even in the best of times.
Traders in the NASDAQ 100 will need to watch the market carefully as we approach the weekend. The holiday and the Non-Farm Payroll announcement on Friday are likely to add to the current volatility in the market. It will be interesting to see how the market reacts and how traders respond to the developments. However, investors should keep in mind that the NASDAQ 100 has been in a strong uptrend over the past few weeks and that a pullback, although expected, is not necessarily a reason to panic.
Ready to trade the NASDAQ 100 Index? Here are the best CFD brokers to choose from.