NASDAQ Weekly Price Forecast – NASDAQ 100 Continues to See Troubles

NASDAQ 100 Technical Analysis

The Nasdaq 100 initially did try to rally a bit during the course of the week, but above the 19,500 level, we have seen a lot of selling pressure. Quite frankly, at this point in time, this was a sell-off that was desperately needed.

The question now is whether or not we can stabilize. I think we will do it sooner or later, but you don’t need to be a hero. This is a slow time of year anyway. Because of this, I’d like to see a little bit of stable sideways action and then take advantage of that. That being said, I certainly won’t short the NASDAQ 100. It’s not built to fall. If it was, it would be an equal weighted index, but it’s not. It is concentrated in a handful of stocks and right now they’re getting hammered.

That could turn around quite easily as sooner or later people will think things like Nvidia and Apple are too cheap, start buying it and the process starts all over again. If it sounds like I’m looking for a buy the dip trade, that’s exactly what I’m saying. I have no interest in shorting, I won’t be shorting. Even if it breaks down another 20%, I’m not going to short it, I’m only going to buy it.

That doesn’t mean I buy it right away, but it certainly is in an interesting area and will cause a lot of interest. Remember, you don’t have to buy the NASDAQ 100. You can just simply set to the side and maybe trade a couple other markets that aren’t behaving so erratically. At this point, I favor the upside, but I haven’t been shown the proof to start putting money to work.

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