Is the Nasdaq 100 At Threat of Deeper Declines?

Inventory Market (Nasdaq 100) Value Outlook:

Inventory Market Forecast: Is the Nasdaq 100 At Threat of Deeper Declines?

The Nasdaq 100 has endured appreciable volatility within the week up to now as rising Treasury yields and simmering inflationary issues have labored to strain know-how shares. Whereas these macroeconomic forces have been in play for the reason that center of the primary quarter, a current flare up on account of incoming financial information is prone to blame for the precipitous losses within the Nasdaq. That stated, the Nasdaq 100 could also be weak to additional losses if the elemental forces at work don’t abate earlier than a key trendline is damaged.

Nasdaq 100 Value Chart: Day by day Time Body (January 2020 – Might 2021)

Already, the Nasdaq 100 suffered a quick break beneath the rising trendline projection drawn off the March 2020 and 2021 lows. A break of conviction may see the index threaten a lower-low beneath the 12,320 space which might counsel the Nasdaq is vulnerable to a broader downtrend.

Inventory Market Forecast for the Week Forward: Reflation Commerce Reignited

Fortunately for bulls, the 200-day easy and exponential transferring averages reside round a sequence of swing lows close to the 12,700 zone and should look to keep at bay additional declines previous to a take a look at of the 12,320 degree.

Nasdaq 100 Value Chart: 4 – Hour Time Body (October 2020 – Might 2021)

Both approach, a convincing break beneath the rising trendline projection from March 2020 would sign a departure from the broader uptrend that has taken place over the past 14 months and would render the tech-heavy index weak to additional declines.

How you can Quick Promote a Inventory When Buying and selling Falling Markets

With that in thoughts, the Dow Jones and S&P 500 proceed to exhibit solely modest weak spot by comparability and could also be the popular automobiles for lengthy publicity at the moment if desired. Additional nonetheless, merchants may take into account brief publicity on the Nasdaq 100 with bullish positioning on the Dow or S&P 500 as a partial hedge. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX