- The NASDAQ 100 has fallen a bit during the trading session on essay, as we continue to see a lot of noisy behavior, the tariff situation continues to cause traders to panic. All things being equal, this is a market that I think is trying to form some type of range,
- and quite frankly you should be cautious shorting at this point, despite the fact that it is obviously a negative market, due to the fact that all it would take is one announcement to turn this market right back around and make it grip like it did last week.
Technical Analysis
The technical analysis right now is difficult in the sense that the range that we are trying to form is massive. It would have the 17,000 level underneath as support, while the 19,130 level above is resistant. If we were to break out of this range that obviously could be a big deal, but all things being equal, this is a market that we will continue to see a lot of volatility and I think it would take a lot to break out of this range. Unfortunately, your position size will also have to be very carefully thought out, as the range is so big that you can get wiped out if you are over levered.
All things being equal, this is a market that is looking for some type of directionality, and at this point in time we are essentially consolidating but doing so in a very wild range. Until we get some type of confirmation as to where we are going next, at least as far as tariffs and global trade is concerned, we will continue to see these vicious moves. With this, I suspect that short-term rallies will continue to be selling opportunities, at least until the trade situation sorts itself out.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.
