NASDAQ 100 Price Forecast – NASDAQ 100 Continues to See Momentum

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied quite a bit in the early hours on Thursday as traders continued to react to the Federal Reserve interest rate cuts. The 50 basis points were much stronger than the anticipated 25, and at this point in time it looks like Wall Street is willing to celebrate.

However, I would urge a bit of caution here because, quite frankly, the Federal Reserve does not cut 50 basis points unless there’s something wrong. The market is approaching a rather significant resistance barrier in the form of 20,000, so we’ll have to see how that plays out as the markets certainly will have a bit of market memory to contend with there.

If we do pull back, I would suspect that somewhere around the 19,500 level, we should see a certain amount of support, probably all the way down to the 19,300 level. Anything below there could open up a new wave of selling, but right now at least, it looks like this market is content to simply grind higher over the longer term as animal spirits have come back into the market.

We’ll have to wait and see what the Americans do with this, but really at this point in time, it is very interesting to point out that yesterday’s close after the interest rate announcement was not strong at all. So, whether or not that is a harbinger remains to be seen.

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