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Nasdaq Forecast: Support Comes Back into Play Ahead of Jackson Hole

By Christopher Lewis
Senior Technical Analyst

Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for tra...

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The NASDAQ has been bullish during the bulk of the trading session, although it's been very choppy as the earnings report from Nvidia last night was very strong.

NASDAQ 100

The NASDAQ has been bullish during the bulk of the trading session, although it's been very choppy as the earnings report from Nvidia last night was very strong, and it does make a certain amount of sense that the NASDAQ 100 rallies from that, considering that the entire narrative for 2 years has been about Nvidia and the AI trade. Whether or not that actually plays out to be bullish over the next several days remains to be seen because we do have a speech coming out of Jackson Hole from Kevin Warsh, the Chairman of the Federal Reserve.

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That being said, short-term pullbacks open up the possibility of buying opportunities here, but I also recognize there could be a lot of volatility, to say the least, and this could be an ongoing thing in this market. NASDAQ traders have been bullish for some time now, and this will be an underlying factor as well.

Jackson Hole Volatility and Technical Levels

The 30,000 level above is a significant barrier and a large, round, psychologically significant figure that I think probably causes a lot of noise. It's possibly worth knowing that the 50-day EMA area is basically where we had bounced from, and that's a good technical analysis signal for longer-term traders.

Now, whether or not that ends up being the way we go going forward, bouncing from there and taking off remains to be seen. If Kevin Warsh is somewhat dovish during the speech on Friday, that probably turbocharges stocks, especially tech stocks. But if he's more hawkish than expected, then that could actually be negative. So, I think the market is anticipating some dovishness, kind of playing its hand a little bit ahead.

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Senior Technical Analyst
Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

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