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NASDAQ 100 Forecast: Consolidates at High Levels

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • In today’s Nasdaq 100 analysis you can see that there is a lot of like noisy behavior.
  • I think that given enough time, we could see a lot of choppy behavior.
  • But I do think that we continue to try to press to the upside.

Ultimately, this is a market that given enough time, we'll have to come to some type of resolution. But unfortunately, it's been hijacked by just a few stocks. Wall Street is throwing money into Nvidia, Microsoft, Apple and just about nothing else. So as long as that's going to be the case, you have to pay attention to a handful of stocks that will make the Nasdaq 100, and the S&P 500.

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The NASDAQ 100 is an ETF at this point

The Nasdaq100 itself acts like an ETF. But this concentration of liquidity is not a good thing, but it's also something that you can't fight. So, with that in mind, I do believe that we are more likely than not going to continue to find buyers or dips. That being said, we are heading into the weekend, so Friday probably will be a little bit cooler, but you never know.

NASDAQ 100 Forecast Today 01/07: High Levels (graph)

The market seems to be struggling with the idea of staying above 20,000, as it is a large, round, psychologically significant figure and I think in general will attract a lot of attention just because of that. So, with all of that being said, I think this is a situation where eventually, if we do find a reason to go higher, but in the meantime, we may be setting up for some consolidation, that's fine.

We've had a strong run higher, and I believe at this point the 19,500 level underneath will continue to be an area where value hunters might be interested. Underneath there we have the 50 day EMA racing towards the 19,000 level, which is an area that has been important multiple times in the past as well. Either way, I'm not selling this market any time soon.

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Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

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