NASDAQ 100 Daily Forecast – NASDAQ 100 Continues to See Potential Base Building

NASDAQ 100 Technical Analysis

The NASDAQ 100 level has bounced around a bit during the course of the last couple of days and the early hours on Wednesday won’t be any different. At this point, it looks like we are going to try to challenge the 18,500 level. And if we can break above there, I think that would be a good sign that we are going to get a bit of a recovery. Overnight, the Bank of Japan suggested that perhaps they’re not as hawkish as people were worried. And that could lead people back into the tech-knowledge-y, AI-bubbled type of trade, which of course is driven by the carry trade out of Japan. So, we’ll have to see.

All things being equal, this is a pretty significant sell-off that we have seen, and a pretty significant bounce, but really when you look at it through the prism of what’s happened over say the last couple of months, a lot of technical destruction has been found so I would not be quick to throw a lot of money into this market. Although above $18,500 I might start a little bit of a tester position. If we were to turn around and break down below the $17,700 level, that could mean that things are about to get ugly.

Keep in mind the NASDAQ 100 had been driven by just a couple of stocks, so really what we want to see is a broadening of the rally, perhaps some of the other stocks participating and not just all of the artificial intelligence names.

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