NASDAQ 100 Price Forecast – NASDAQ 100 Continues to See Support

NASDAQ 100 Technical Analysis

The Nasdaq 100 pulled back slightly during the early hours on Monday as we continue to find support underneath, and despite the fact that we are down ever so slightly, it’s already starting to show signs of trying to bounce. It’s worth noting that we’re hanging around the 20,000 level, which of course is a large, round, psychologically significant figure that will attract a certain amount of attention and more likely than not, a lot of options trades. Because of this, I think you’ve got a situation where more likely than not we do bounce. But even if we don’t, at least not right away, there should be plenty of support all the way down to the 19,750 level.

On the upside, the 20,350 level had recently caused a significant amount of resistance, but that doesn’t necessarily mean that it’s going to be hard to break through going forward. Quite frankly, I think it was just more or less an argument of how exhausted the market had gotten. There are some concerns out there about the US economy and the jobs market, which of course will have a knock on effect on pretty much everything.

But at the same time, the Federal Reserve looks hell bent on trying to keep loose monetary policy as long as possible. And if that’s going to be the case, that’s probably going to continue to throw liquidity into the market and drive the stock market higher as the economy itself falls apart. It’s not really that uncommon in the US.

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