The Nasdaq 100 closed around the 25,529.26 level going into the weekend, and yesterday’s U.S MLK holiday may not have been long enough to ease the minds of nervous financial houses as they get set for today.
The Nasdaq 100 is set to start Tuesday’s trading around the 25,529.26 ratio after it returns from a the U.S holiday weekend observing Martin Luther King Jr. Day. The three day rest for large players may not have been long enough to ease nervous mindsets. The weekend produced more talk about Greenland and tariffs being threatened for Western Europe as President Trump refuses to drop the subject.
While some market participants might think of this of Greenland as noise, the possibility that investors are becoming rather tired of the constant news flow from the White House may be having an impact on Wall Street. However, the Nasdaq 100 has been facing strong headwinds over the past few months, so the above Trump saga may in fact only be an excuse for some financial institutions, while other dangers exists – like the belief that some companies in the AI sector are overbought.
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Last Week’s Results and Today’s Coming Action
The Nasdaq 100 on Tuesday of last week was challenging the 25,880.00 vicinity. The index did selloff from that point and reached a low around 25,260.00 on Wednesday. Yet, upon better than anticipated inflation data the Nasdaq 100 jumped to almost 25,800.00 on Thursday. But Friday sparked another downturn going into this past weekend.
Going into today, financial institutions not only have Greenland on their minds and the Federal Reserve battle over interest rates, but they also have to contend with an anticipated President Trump speech at Davos tomorrow and U.S GDP numbers on Thursday. The nervous price action on the Nasdaq 100 is likely to continue the remainder of the week. Financial institutions which are always clutching for optimism need a dose of positive impetus. The problem is that it may be hard to find in the short-term.
Potential for Fast Moves on the Nasdaq 100
The Nasdaq 100 is rather famous for creating dynamic moves. The lower values the index is now showcasing could disappear rather quickly. Many day traders may believe the Nasdaq 100 is oversold and that negative sentiment will not remain.
- However, lows last week may have only been a warning sign that bearish concerns could once again test further depths.
- The Nasdaq 100 should be watched per its opening in the coming hours, because large traders will be able to express their existing sentiment quickly and fast moves should be expected.
- Speculators with limited funds should watch the opening, before dipping their toes into the betting pools to see if they can judge the temperature of the Nasdaq 100.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 25,570.00
Current Support: 25,495.00
High Target: 25,725.00
Low Target: 25,325.00