NASDAQ 100 Forecast: Kicks Off The Week With A Negative Move| MENAFN.COM

Sunday, 29 January 2023 11:43 GMT

NASDAQ 100 Forecast: Kicks Off The Week With A Negative Move

(MENAFN- Daily Forex)
  • The nasdaq 100 has fallen during the trading session on Monday, showing signs of hesitation near the 12,000 level.
  • By doing so, the market looks as if it is going to continue to see a lot of noisy behavior, with the 50-Day ema sitting just below and offering potential support.
  • Because of this, I think that the downside is probably somewhat limited, as we continue to grind back and forth and try to figure out where to go next.

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It's probably worth noting that the markets saw the interest rates spike in the United States during the day, and it shows just how sensitive technology stocks are to interest rates. Ultimately, if we were to break down below the 11,500 level, then it's possible that we could drop down to the 10,750 level over the longer term. On the other hand, if we turn around and break above the recent highs of the last couple of trading sessions, then it's likely that we could see the 12,500 level. That's where the 200-Day EMA is hanging about, and it probably causes a certain amount of psychological resistance.Waiting for the Federal Reserve

Ultimately, I think you will continue to see a lot of noisy and choppy behavior, and that makes quite a bit of sense that we would see it since we are between the 50-Day EMA and the 200-Day EMA. Those indicators are widely followed, so a lot of times you will see noisy behavior between the 2. Furthermore, we have the Federal Reserve interest rate hike coming next week, but people would be paying attention to what it is the Federal Reserve says as part of the statement.

Ultimately, I think it's more about forward guidance and therefore we need to look at it through the prism of risk appetite and of course the idea of whether we are going to see more problems going forward with the economy and the federal reserve program with monetary policy over the next couple of months. At this point, they will remain tight, but the question is whether they are going to remain tight for much longer than people had completely anticipated. I think at this point the market is starting to come to grips with the idea that perhaps the Federal Reserve is not going to come to bail them out, and that could cause some issues.

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