- The NASDAQ 100 has initially gapped higher to kick off the trading session on Wednesday to show signs of life.
- However, the market has pulled back from there, and therefore it looks as if we are trying to break down below the 12,250 level.
- The 12,250 level is an area that has been important a couple of times, and if we can break down below there it’s likely that we will continue to go much lower.
Rallies at this point in time will continue to be sold into, with a 50-Day EMA sitting just below the 12,800 level and should offer a significant amount of resistance. If we can break above there, then the market is likely to go to the 13,500 level where we see a resistant barrier in the form of the previous action, and then of course the 200-Day EMA. This is a market that I think will continue to be noisy, to say the least, but I think Thursday might be a bit quiet due to the fact that we are waiting to see what happens with the jobs number.
Markets Waiting for Job Numbers
Keep in mind that the NASDAQ 100 is very sensitive to risk appetite and of course interest rates, and as we are going to get key data about the jobs market, a lot of people will be paying close attention to the Federal Reserve and what it might do as the market will be paying attention to the idea of whether or not they can continue to be very tight with monetary policy. I think they are going to be tight regardless of what the jobs numbers as, but people will be trying to read quite a bit into it, as per usual. After all, Wall Street has been raised on cheap and free money coming out of Uncle Jerome, and they are still trying to come to grips with the idea that the Federal Reserve may not be willing to bail them out. I think the real tell was when Federal Reserve members stopped day trading. In other words, they may actually focus on the middle class and the real economy for once. Because of this, rallies will get sold into, but I’m going to leave this one alone on Thursday because Friday is going to be far too volatile. Will be interesting to see how we close at the end of the week, because it will show whether or not people are willing to hang on to the index.
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