Yesterday’s early trading in the Nasdaq 100 spiraled lower, this as futures opened and negative sentiment from Friday close before going into the weekend caused more selling. A low that challenged the 23,600.00 mark was seen as traders and large players dealt with jitters. And then like a flick of a switch, the Nasdaq 100 began to erupt higher as President Trump announced new tactics regarding the Iranian war, in which he said his administration is negotiating with Iran.
On that momentum the Nasdaq 100 bolted towards the 24,580.00 realm. This was then followed by selling which took the cash market for the Nasdaq 100 towards a close of around 24,188.00 on Monday. Today’s early trading has seen more buying, but it is clear that large players active in the Nasdaq 100, like other assets, still have plenty of angst and nervous conditions remain prevalent.
Technical Realms and Sentiment Headaches
Trading in the Nasdaq 100 futures is now traversing territory seen on Friday, before a sharp selloff ignited. While yesterday’s gains supplied much needed optimism for traders who feel more comfortable with bullish perspectives, the day did not produce a prolonged and durable shift. The Nasdaq 100 remains well below its highs around the 25,000.00 level seen last Wednesday, not to mention much higher realms seen previously. The Nasdaq 100’s recovery yesterday in essence still looks suspicious.
Day traders need to remain alert to the threat of reversals lower. Yesterday’s rhetoric from President Trump helped those who had long positions in U.S equity indices (the options markets saw some odd betting), but all it will take is one threatening statement from the U.S President to make financial institutions nervous once again. Trump said Iran has a five day window to make an agreement, which essentially sets the remainder of this week for the Nasdaq 100 to be at the mercy of swirling emotions.
Short-Term Pursuit of Momentum
Speculators who insist on participating in the Nasdaq 100 need to understand fast changing sentiment is driving the marketplace.
Yes, technical levels remain intriguing, but traders should not become too ambitious, they should continue to look for quick hitting momentum.
The 24,300.00 above is close, looking for movement towards this level is not farfetched, but dreaming of the 24,400.00 and 24,450.00 may not prove easy for those without deep pockets.
Intraday trading remains difficult and this will likely remain an overwhelming source of frustration for those who do not use solid tactics today and tomorrow.
The Iranian war remains the key element for near-term sentiment swings.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 24,300.00
Current Support: 24,260.00
High Target: 24,475.00
Low Target: 24,120.00