NASDAQ Weekly Price Forecast – NASDAQ 100 Recovers For The Week

NASDAQ 100 Technical Analysis

The NASDAQ 100 initially plunged for the week but has turned around to show signs of life as it looks like we are trying to do everything we can to rally. At this point in time, the NASDAQ 100 is continuing to move on the idea of loose monetary policy as Wall Street is sitting there with its hands out looking for cheap money from the Federal Reserve. All things being equal, this is a market that continues to pay close attention to the 19,500 level. And if we can continue to go above there, then the market goes looking to the 20,000 level.

Anything above that level then I think really opens up the reality of a fresh new high and beyond. Regardless, I don’t have any interest in trying to short this market because quite frankly, it is a situation where traders continue to see the market as one that is going to continue to go higher. It’s more or less a self-feeding, self-fulfilling phenomenon. I don’t have any interest in shorting this market.

I very rarely short this market mainly due to the fact that it’s not even equal weighted, it only takes about five or six stocks to go to the upside to drag the index with it. So really, I think at this point in time, it remains a buy on the dip scenario all the way down to probably 18,000. Anything below there could obviously be a major sign of concern, but at this point in time it looks unlikely that will happen.

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