NASDAQ 100 Price Forecast – NASDAQ 100 Continues to See Negativity

NASDAQ 100 Technical Analysis

The NASDAQ100 has absolutely been hammered in the early hours on Monday, dropping as low as the $17,300 level before bouncing slightly as we head towards the New York open. Quite frankly, I don’t know that the New York Open’s going to help much. And in fact, I suspect you’ll see even more liquidation due to stocks that will almost certainly gap lower. There are a lot of concerns out there, but recently the trade that seems to be moving the market the most has been the liquidation of the Japanese yen carry trade to buy AI stocks.

And as a result, that’s what you’re seeing in this index. You’re seeing the fact that everybody is running from an AI. NVIDIA has just pushed back its timeline for its latest chips, and that will almost certainly make everybody upset. That being said, my email box is full of people asking me if they should buy the dips. I wouldn’t do that here. While we may be able to hold this area for support. If we don’t, things are going to get really ugly really quick. And in fact, you probably could be seeing something closer to the 2008 realm. Is it going to be as devastating? Probably not. The issues are a lot different.

But what I mean by that is, you’ll see a market that just keeps falling until it stops. Once it stops, then obviously it becomes a great time to buy in. But I don’t think we’ve seen that quite yet. In just a couple of weeks, we’ve seen this market drop about 16.9%. So, to give you a heads up, my son’s trading account is now currently in all cash, probably going into short term bonds and just letting things settle down.

You don’t have to be the hero here. You don’t have to catch the falling knife. Sure, somebody has to bottom tick the move, but it’s probably not going to be you. So, safety is paramount here. And in an environment like this, I suspect that the New York open will be extraordinarily rough with the market behaving the way it is, the smartest trade quite frankly is probably just to watch and wait.

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