Potential signal
I am buying the NAS100 at 26,250 on a bounce, with a stop loss at 26,150 and aim for 27,000 level.
The Nasdaq 100 was pretty negative during the trading session on Thursday as interest rates continue to climb in America based on nonsensical headlines coming out of the Middle East. When you have a lot of back and forth as far as how things are going between the Iranians and the Americans, it really makes things difficult as a trader to get an idea as to how we are to play the risk appetite card.
The 25,000 area being broken a couple of weeks ago was a big deal, but now it looks as if the 26,250 level is an area that I think continues to be your short-term floor. As we reach towards that area, I would anticipate some type of support, and I would also watch the 10-year yield in the United States to pay close attention to the 4.30%.
Top Regulated Brokers
Risk Appetite and Yield Dynamics
We have broken above there during the day, and it has a certain amount of negativity attached to it when it comes to risk appetite. I think that continues to be the case and if rates start to rise again it is going to be very difficult for the Nasdaq.
Quite frankly, I think this is a market that just needs to pull back anyways, so at this point I'm hoping it pulls back quite a bit so that I can take advantage of cheap contracts. It's not until we break down below the 25,000 level that I would start to think that maybe the uptrend is over. Expect volatility, but all things being equal, if we get a bounce anywhere near 26,250 I'm a buyer of that particular move.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.