The NASDAQ 100 continues to see a lot of noisy trading, as there are a lot of concerns about the Middle east, interest rates, and the fact that we are in the middle of earnings season.
NASDAQ 100 showed a bit of positivity during the trading session on Wednesday as we continued to consolidate after the big move to the upside.
We sold off to start out the day but then turned around to rally and it suggests that we are in fact in a situation where traders continue to come in and buy the dip.
Buying the dip, I think, is the way going forward and as long as we can find buyers to come into the Nasdaq 100 market and support it I think downside momentum is somewhat limited. The 28,000 level is an area that I think will be a large round psychologically significant figure and an area where a lot of people will be watching.
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Anything below there then gets a little uglier, but I think really some sideways action here makes a lot of sense as the NASDAQ 100 has truly launched over the last 6 months or so. And with that I think you have to look at the market as one that is trying to figure out its longer-term move and while I do believe it will be positive and to the upside but I also recognize that you need to attract new buyers and one of the easiest ways to do that is to either go sideways and get quiet for a while to work off the froth or to pull back in order to offer cheaper contracts.
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Either way I think a little bit of patience probably goes a long way here and I do think that the buyers will eventually win out. However, we need to be cautious along the way, and not jump in right away.
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