- The NASDAQ 100 fell during the trading session on Tuesday after the JOLTS Job Openings number in the United States came out hotter than anticipated.
- This has a lot of people concerned with the idea that the Federal Reserve was not going to be cutting rates anytime soon.
- While that may or may not be true, the reality is that the market needed some type of reason to drop from here, because we had been very positive over the last several days, so a little bit of a give back was probably necessary.
Technical Analysis
The technical analysis for the NASDAQ 100 has been very bullish for a while, and quite frankly since we broke above the all-time high at the 22,015 level, we have shot straight up in the air. That being said, a return to that level probably offers a significant amount of support, as it should have a certain amount of “market memory” due to the fact that it had been so resistant. Furthermore, you also have to keep in mind that the 50 Day EMA is all the way down at the 21,400 level and rising, so it’s really not until we break down below there that I would become negative.
This is a market that I think also has to pay close attention to the fact that this week is only 4 days long, with the Non-Foreign Payroll announcement on Thursday being the big, main event. Keep in mind that the market has been a little overdone, so it’s very possible that between now and then, we could see a little bit of a pullback in order to settle toward the previous high, at the 22,250 level, opening up the reality of potential value hunting. If the jobs number comes out hotter than anticipated, that could cause some chaos, but at the end of the day the overall trend is to the upside saw I am only looking to get long at this point.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.