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MENAFN- Daily Forex)
- Nasdaq 100 fell again during the trading session on Tuesday as we continue to see a lot of negativity out there in the stock market.
- There are a whole host of reasons why the NASDAQ 100 could be falling, but one of the biggest concerns is going to be the tariffs right now, as traders are very uncertain as to how the economy is going to behave.
All things being equal, this is a market that is somewhat broken, so it's not a huge surprise to see that it is struggling at the moment. However, I do think it's probably only a matter of time before we see the market try to rally and bounce from these extremely oversold prices. That doesn't necessarily mean that I'm willing to jump in with a big position, but if we can recapture the 20,000 level, I think that would go a long way for psychology.
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It will be interesting to see how the market behaves during the session on Wednesday, especially the last hour or so of the day. We have got an FOMC interest rate decision, which is expected to be no decision at all, but we also got an interest rate statement and of course the press conference at the end of the day. If there's any hint that the Federal Reserve is going to start cutting rates, it's very likely that the stock market will have a short term rally. In that environment, it would not surprise me at all to see the NASDAQ 100 rally rather significantly. After all, there are a lot of traders right now who would welcome that news.
EURUSD Chart by TradingView
That being said it's also likely that we are going to head into a small recession in the United States, but it should be short-lived. We have already dropped roughly 10% to the NASDAQ 100, so one would think that some traders are trying to get into the market and take advantage of what could be the recovery. I think we have to get the Federal Reserve out of the way first to see whether or not that's actually likely.
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