The Nasdaq 100 has taken on a rather stormy pattern the past couple of weeks. As of this morning the Nasdaq 100 via its futures trading is near the 25,280.00 ratio, this after touching the 24,200.00 threshold last Thursday when frantic selling was taking place. And just to remind readers, the Nasdaq 100 was around the 26,260.00 mark on the 28th of January. Day traders have been treated to fast conditions which have required solid tactical skill while speculating.
Yesterday’s high in the Nasdaq 100 reached to the 25,350.00 area. Risk management in the index is crucial at this juncture, while this morning’s incremental selling hasn’t reached epic proportions nervousness is still justified. However, establishing if the anxiety being displayed in Nasdaq 100 means it is a buying or selling opportunity remains a difficult problem to resolve, particularly for short-term wagering.
Reading Market Conditions Needs a Translator
Technical traders may feel comfortable within the current environment, but the gains made since Thursday’s lows have not exactly justified an overly ambitious buying gambit. The problem for bullish perspectives currently is the Nasdaq 100 has not been able to sustain higher ground. While this may allow day traders an opportunity to look for support via their technical perspectives and try to ride some momentum upwards, it also remains wise not to take on a blindly optimistic viewpoint.
Having said the above, the Nasdaq 100 is traditionally a fast market. The ups and downs of the index are natural perils for day traders. Today Retail Sales numbers will come from the States, tomorrow jobs numbers will be published. But perhaps the star of the data parade and biggest impact will occur this Friday when the CPI inflation statistics are published. Better than expected inflation results could spur on buying in the Nasdaq 100.
Looking for Positive Impetus in the Nasdaq 100
However, now until Friday is a long time and has many days of trading in between. Perhaps it is easiest to simply know the Nasdaq 100 will remain choppy.
- But that is too easy to say and not what you want to read, it appears the best advice for conservative traders is to look for slight push backs lower while looking for reversals higher.
- Nervous sentiment does seem to be casting a shadow, so it is also vital for day traders to simply remain cautious while financial institutions seek better outlooks and await positive impetus.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 25,305.00
Current Support: 25,240.00
High Target: 25,700.00
Low Target: 24,990.00