It is not only earning season for the NASDAQ 100 as corporations report on their economic results and outlooks, but this week will also see a parade of critical inflation data from the States. The U.S will not only report CPI results today, but Producer Price Index numbers will come tomorrow, and Retail Sales figures will be reported on Friday. While technical traders may claim not to be interested in any of these reports, it is a certainty the data will affect behavioral sentiment in what is already a nervous stock market.
Whirlwind of Fast Results Past Month Likely to be Produced Again Near Term in NASDAQ 100
While the trading on the NASDAQ 100 has produced better results since the middle of June, this has not stopped nervous choppy conditions. Yesterday’ fall below the 11,700.00 mark was a reminder the technology driven stock index can move fast, and the lows touched on Tuesday did hit important support near the 11,680.00 level. Spikes have been prevalent on the NASDAQ 100 and this may be seen today as the CPI numbers are announced. The long-term bearish trend on the index has not likely seen its last days.
- Consumer Price Index results today will impact the NASDAQ 100 with volatility.
- Inflation reports today and tomorrow will affect outlooks of financial houses and speculators.
- Economic reports this week will cause a reaction from the U.S Federal Reserve in late July.
Sustained Move Below 11,700.00 could be a Negative Signal for NASDAQ 100 Price Action to Come
If the NASDAQ 100 falls below the 11,700.00 level today and sees sustained price action below this juncture, negative sentiment could build rapidly among market participants. Just last week on the 5th of July the NASDAQ 100 was trading below the 11,400.00 level. Although June lows which were below the 11,100.00 have not been flirted with in July, those lower values may see a challenge yet again. If inflation data proves more negative than anticipated today, the NASDAQ 100 could turn violent.
Yes, there is the possibility inflation data today and tomorrow could be better than expected and the NASDAQ 100 could get a positive push upwards. Traders who are conservative may want to wait for the data to be released today before dipping their toes into the speculative waters which could see a rapid storm hit. Stop loss and take profit targets will be needed today to avoid volatile hits to trading accounts. Speculators should expect swift results early today when the NASDAQ 100 opens.
NASDAQ 100 Short Term Outlook:
Current Resistance: 11805.00
Current Support: 11703.00
High Target: 11937.00
Low Target: 11467.00
