NASDAQ 100 Forecast: Finding Buyers After Short-Term Pullback – 15 January 2020

The NASDAQ 100 has initially tried to rally during the trading session on Tuesday but then gave back the gains in order to form a negative candlestick. Ultimately, I think that it’s only a matter of time before the buyers return though, as we have been in such an explosive uptrend. Furthermore, the United States and China are getting ready to sign the “phase 1 deal”, which is going to increase transactions between Beijing and Washington, and that should give a bit of a boost to this index considering so many companies out there on the index have a lot of exposure to both countries.

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I like buying pullbacks, because the NASDAQ 100 has plenty of reasons to think that it’s going to continue going higher, and obviously we are in a very strong uptrend. The Federal Reserve will continue to support the markets anyway they can, and of course the 50 day EMA is starting to scream towards the 8600 level. I recognize the 8750 level as significant support, so if we can get a bit of a pullback and the 50 day EMA to reach towards that level, it might be a bit of a “perfect set up.”

If we were to break down below the 50 day EMA, it’s likely that the market probably continues to go a bit lower. If that’s going to be the case, then keep in mind that the market will continue to find plenty of interest at these lower levels, and I think that any type of major selloff will be thought of as a buying opportunity without some type of major fundamental catalyst that suddenly changes. With tensions coming down between the Americans and the Chinese, it’s a bit difficult to imagine that we are going to see a sudden change in overall attitude. That being said, anything’s possible sushi keep that in mind.


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To the upside, the 9000 level being broken suggests that we could go as high as 9500 over the next several weeks if not months. I don’t have any interest in shorting this market, I think that looking for value will continue to be the best way to go going forward as it is in most indices involving the Americans. Furthermore, even though we are a bit extended it looks to me like the 8750 level is very solid as far as offering the short term “floor.”


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