Nasdaq 100 Analysis Today 05/08: Record Highs (Chart)

(MENAFN- Daily Forex) The Nasdaq 100 has delivered a stern test for day traders the past week, its gains yesterday followed a strong selling binge seen on Friday as behavioral sentiment shifts continue to create a rollercoaster of speculative thrills.

The Nasdaq 100 is near the 23,211.00 mark as of this morning in early futures trading. A record high around the 23,700.00 vicinity was seen last Thursday. And then the Nasdaq 100 dove from its apex levels and dropped to nearly 22,600.00 on Friday. Monday's gains higher likely gave bullish traders who are intent on pursuing loftier visions a moment to relax.

However, day traders should not get too comfortable with the Nasdaq 100. Gains upwards and reversals lower were volatile last week, yesterday's buying continued the drama being seen. The ability to recapture and stay above the 23,000.00 mark is impressive, but it should also cause some risk management consideration when leverage is being used.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Shifting Sentiment and Nervous Markets

The shifting sentiment in the Nasdaq 100 is not a stand-alone. Other financial assets are exhibiting a wide range of values and day traders caught on the wrong side of trends, headwinds and developing price action are likely feeling frustrated. Conservative speculators using solid risk taking tactics are likely not feeling particularly over confident at this moment either.

Talk of interest rates, tariffs and jobs numbers combined late last week to create a whirlwind which saw record highs followed by explosive action downwards. So what will the Nasdaq 100 do today and tomorrow? It is likely to stay under the sway of sentiment that is being generated by financial institutions which are worrying about the short-term and perhaps optimistic about the mid-term. Continuing to look for upside in the Nasdaq 100 feels like a proper choice, but it must be done with extreme caution.

EURUSD Chart by TradingViewLast Thursday's Highs as a Target

The speed upwards generated in the Nasdaq 100 last week should not be given too much introspection when asking why it happened. Clearly the broad markets are being swayed by shifting emotions via conflicting storms like quarterly earnings, U.S economic data, tariff agreements and noise, and the Federal Reserve's lack of a backbone which has caused additional murky waters.

• However, through this stated list one thing has been clear, the ability to trend higher.
• Yes, Friday's selloff could be a warning sign and a moment that symbolizes a sudden downward track that is going to emerge, or it could be one day of poor sentiment and some profit taking too which combined to create a move lower – for a day.
• Yesterday's move higher is a reminder buyers remain abundant. Will buyers outnumber sellers today and tomorrow?
• There will be some U.S data today via ISM Services PMI, but it will likely remain a backdrop for the real driver of the market – short-term emotions mixing with and outlook.
• Buyers, nor sellers, should get too ambitious, more volatility is likely going to be seen.
• Targeting last week's apex might be too expensive a bet for those seeking more upwards action.
• Use take profit orders to capture winnings that emerge.

Nasdaq 100 Short-Term Outlook:

Current Resistance: 23,240.00

Current Support: 23,180.00

High Target: 23,400.00

Low Target: 22,940.00

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