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NASDAQ 100 Price Forecast – NASDAQ 100 Continues to Stabilize

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NASDAQ 100 Technical Analysis

The Nasdaq 100 has gone back and forth early during the trading session on Thursday as we continue to build a potential basing pattern. We did fall pretty hard during the late hours on Wednesday, but it certainly looks as if we are trying to turn things around and show signs of life again.

I still believe that the 17,000 level underneath is a major flaw, and I do believe that as we are starting to head into the bulk of earnings season, we will start to see the market respect that, unless of course, the earnings come out really bad. Now, with that being said, I think you’ve got a situation where you are still buy on the dips and therefore you have to look at each dip as a potential opportunity.

The 50 day EMA above will end up being a resistance barrier, and breaking above that would obviously be a very bullish sign. If that were to happen, then the market very likely could go looking to the 18,250 level. If for some reason we were to break down below the 17,000 level, then I believe the 200 day EMA underneath could end up being a potential support level and perhaps even target for short sellers.

In the meantime, I expect a lot of choppiness, but that does make a certain amount of sense considering we are trying to build up the confidence to continue the longer term uptrend. The NASDAQ 100 is typically the “darling of Wall Street”, and therefore I think there is a natural proclivity to rising over the longer-term regardless. This market isn’t one that I ever feel comfortable in shorting unless something massively negative is going on at this moment.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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