NASDAQ 100 Forecast: Pierces Recent Low – 11 October 2022

The NASDAQ 100 has fallen during the trading session on Monday to kick off the week on the wrong foot yet again.Ultimately, this is a market that I think continues to see a lot of noisy behavior, but given enough time, we will have to see something give. It does look as if the sellers are going to continue to run the market, especially as interest rates in America continue to climb.The higher interest rates are horrible for the technology sector, so there will course be plenty of negativity. The downtrend is very much intact, and with that being the case, I am simply looking at rallies as an opportunity to get short yet again at the first signs of resistance.

The NASDAQ 100 is driven by a handful of stocks, so you will have to pay attention to all of the usual suspects. This includes Tesla, Amazon, Microsoft, and the like. I think that we are just now getting ready to see the rally sold into yet again, since earnings season starts late this week, and quite frankly most of the guidance is going to be poor.

The 50-Day EMA is breaking below the 12,000 level and coming into the picture has potential dynamic resistance. If we break down below the bottom of the candlestick for Monday, then it opens the door for a move down to the 10,500 level, possibly even 10,000 over the longer term. Any rally now will more likely than not be suspicious, so therefore I don’t think this is a scenario that you should be trying to get too cute with, as the market has been so negative for so long. Yes, I recognize that we are getting low at this point, but it’s a situation where the markets will continue to look at this through the prism of fear, and therefore think it’s probably going to have the occasional bear market rally, but those will continue to run out of momentum.

We are not at capitulation as there are still plenty of analysts out there trying to pick bottoms. The economic numbers continue to look very poor, and they are not getting any better. At this point, it looks like we have further to go but you don’t necessarily want to chase the market to the downside.

Ready to trade the NASDAQ 100 Index? We’ve made a list of the best online CFD trading brokers worth trading with.