Friday’s highs in the Nasdaq 100 touched the 27,865.00 vicinity. Yesterday’s trading in the index after another weekend of nervousness being displayed caused some selling. However, the downwards action yesterday was not pervasive. And financial institutions participating early this morning have proven to be strong sellers as the Nasdaq 100 moves around the 27,835.00 ratio.
Sweeping moves in the Nasdaq 100 have taken on a dynamic feature the past few months and the start of this week show little change. While noise continues to be heard from many locales in the Middle East and the U.S White House, large players in the Nasdaq 100 have shown they have a desire for buying. At this time last week the Nasdaq 100 was near the 27,100.00 ratio which highlights the upwards momentum of the index.
Choppy Waters But Buying Remains in Vogue
Today’s early buying on the Nasdaq 100 have brought values within sight of apex heights seen only a couple of days ago. The ability of the Nasdaq 100 to move in large and fast bunches makes speculating on the index volatile for those who are not prepared. Traders who want to pursue upwards traction need to understand intraday movements can be dangerous. While using stop losses are important, putting the stop losses too close to market action increases yours chances of getting knocked out of a trade before it has had time to really operate.
The Iranian war is certainly a factor in broad market sentiment, but the Nasdaq 100 is moving largely based on a belief the index had been oversold in late March. The move higher may eventually run into hurdles once again that create a sustained downwards motion, but for the time being betting against higher ratios in the Nasdaq 100 to develop may prove wrongheaded.
Days Ahead and Ambition of Bigger Values
The ability of the Nasdaq 100 to achieve record highs this past Friday, suffer slight losses yesterday, and now show strong buying this morning sets the rest of the day’s results up for serious consideration regarding what happens next.
The 28,000.00 level may feel like a step too far to consider for most speculators.
However, the capability of the Nasdaq 100 to move in thunderous bursts allows for consideration of new targets.
Day traders need to understand the movement in the Nasdaq 100 is being generated by sentiment which may be focusing on a fear of missing out syndrome.
That doesn’t mean the buying power is justified, only that it has enough momentum to create a strong trajectory.
Yes, news developments could shake the confidence of the marketplace quickly, but near-term players may believe new record levels are about to be created in the Nasdaq 100.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 27,860.00
Current Support: 27,815.00
High Target: 28,010.00
Low Target: 27,630.00