NASDAQ Weekly Price Forecast – NASDAQ 100 Falls Hard For The Week

NASDAQ 100 Technical Analysis

The NASDAQ 100 fell rather hard during the course of the trading week, plunging below the 19,500 level initially, and then dropping almost another 1,000 points. At this juncture, I do believe that the 18,500 level will be supported, but if we break down below there, things start to get somewhat interesting. Keep in mind that interest rates are going to be dropping soon, but the question is whether or not the Federal Reserve cut has something to do with a soft landing, which has been the narrative, or is it something that is a little bit more nefarious out there?

Fed funds futures markets have priced in the idea of a 225 basis point rate cut between now and the end of next year. That’s not a slow advance. And if that ends up being true, that means something is very wrong with the economy.

Keep in mind, equities traders are what most people would consider to be dumb money. And the real signs of money flows and intelligent analysis is almost always found in the bond market. Bonds giving us a sign that something isn’t quite right means that some of the highly speculative companies in the NASDAQ 100 might be on the back foot.

It is because of this that if nothing else, I think the NASDAQ 100 will continue to underperform other indices even if they all rise. If we start to see the general market sell-off though, the NASDAQ 100 will be one of the first places people start shorting. Pay attention to the 18,500 level as a sign of where we might be going.

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