The Nasdaq 100 has seen nervous selling develop since touching a new high on Thursday of last week, anxious large players in the stock market have turned cautious and are awaiting results from several key cornerstones.
Yesterday’s trading on the Nasdaq 100 produced selling which followed Friday’s cue. This morning’s opening on futures platforms shows the Nasdaq 100 near the 28,940.00 mark with fast paced trading. Large financial institutions and big players are likely waiting on results from corporate earnings, watching the U.S bond market which has seen yields rise, and lastly are listening to the rhetoric surrounding the Iranian situation.
These three ingredients equal a lot of headwinds regarding sentiment, not to mention the possibility some large players may simply think the Nasdaq 100 at its apex last week represented a good time to cash out some profits. The short-term remains dynamic and trading is likely to be hesitant as new impetus is awaited on that will deliver positive thoughts. Having said this, all-time highs last week in the Nasdaq 100 show buying power when strong can produce solid velocity upwards.
FOMO Meets Fear of Getting Clobbered
As always speculators looking for quick hitting intraday results need to practice solid tactics. The ability of the Nasdaq 100 to hit the 29,700.00 realm last Thursday and then touching the 28,785.00 ratio vicinity when fighting lows yesterday is a warning experience is needed. Day traders can not bet blindly, and current events remains electric regarding the opportunity to create results many folks cannot handle correctly.
The notion that the Nasdaq 100 is now in oversold territory may be of interest for some speculators, but looking for durable support and it working is a big ask. The Nasdaq 100’s ability to reverse higher is well-documented, but the potential of getting caught in a massive selling wave should strike fear in the hearts of day traders who do not have deep pockets.
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Short-Term Dilemma for Speculators
Traders who do not practice strict risk management need to be careful today and remainder of the week. The Nasdaq 100 will certainly produce intriguing results, but trying to capture momentum and take advantage of it might be tough.
The thought that the index is approaching solid lower ratios that will ignite buying opportunities is of interest.
However, the 28,800.00 to 28,700.00 levels are in sight regarding low,s and if they prove vulnerable in the near-term this could spark stronger selling.
If the Nasdaq 100 is able to start flirting again with the 29,000.00 mark this could be a positive.
Perhaps the biggest clue for day traders is to use the 29,000 target above as a potential goal for upside, and for sellers to look for 29,900.00 in the meantime.
Technical levels will certainly be tested today, the question is how volatile the ride will be.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 28,999.00
Current Support: 29,910.00
High Target: 29,150.00
Low Target: 28,750.00
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