The Nasdaq 100 cash market gained on Monday and finished near the 29,697.00 vicinity. However, early market action this morning has seen a broad selloff in the tech heavy index as it traders near the 29,455.00 mark. Readers are urged to check on the value of the Nasdaq 100 as they read this article to gauge what has happened and is occurring currently.
Two early narratives are being heard regarding the selloff that has been sparked this morning. One, is because Samsung, the Korean giant tech firm, has sold off in South Korea. The other has to do with SpaceX formally joining the Nasdaq 100. Both of these excuses for the sudden selloff this morning are worth paying attention too, but at the same time not a reason to go into a nervous frenzy if you are a day trader. There are always reasons for market action, and a lot of the time it has nothing to do with narratives being heard.
Light Trading Volumes and Return of the Big Players
Day traders need to keep in mind that trading volume on the Nasdaq 100 has been light because of the 4th of July holiday. The long weekend sparked lower volume before last week concluded and yesterday’s action was also lighter than normal. Things will start to return to normal summertime volumes today and tomorrow, this may also be a catalyst for the sudden momentum shift. Folks remain nervous regarding the Nasdaq 100, this has been seen over the past handful of weeks.
Yesterday’s gains of nearly 1.26% in the Nasdaq 100’s cash market were solid, but accomplished when many large players were absent. Considering the frequent reversals that have been seen in the Nasdaq 100 the past two months, it should not be surprising to know the index is now traversing a value it traded on around the 13th of May.
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Focus and the Nasdaq 100 Today and Tomorrow
Speculators need to remain aware the Nasdaq 100 can deliver unwanted velocity. The index has become a playground for swift reversals that carry plenty of dangers regarding leveraged wagers.
Looking for upside and the potential of greater heights is logical considering the ability of the Nasdaq 100 to create excitement.
However, reversals lower have been violent and costly for many day traders.
The current value of the Nasdaq 100 is well below its apex highs seen in early June when the 30,800.00 level was traded.
Conditions in the Nasdaq 100 are not likely to suddenly grow tranquil, speculators need to practice solid risk taking tactics to bet on the index.
Choosing direction at this time remains risky depending on perspective and a test of fortitude.
Perhaps looking for support levels is attractive, but day traders need to be aware support levels have proven vulnerable the past two months as the 29,000.00 mark has also been tested on occasion below.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 29,480.00
Current Support: 29,420.00
High Target: 29,590.00
Low Target: 29,250.00
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