November 24, 2022
  • November 24, 2022

NASDAQ 100 Forecast: A Crazy Day

By on October 14, 2022 0

What makes this setup even more dangerous is the fact that it is now winning the season, which kicks off in earnest next week.

  • The NASDAQ 100 declined to kick off the trading session, only to turn around and show signs of massive volatility.
  • In fact, we ended up forming a huge “outer day”, which is a very bullish sign.
  • That being said, the market will continue to see a lot of noisy behavior, and so it is likely that we will continue to see a lot of volatility and maybe even some short-term bullish pressure.
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Stocks crash again

That said, the CPI numbers for the US came out during the session at 0.4% versus the 0.2% expected. It’s a little confusing, but someone on Wall Street came up with a story that everyone bought into. The reality is that the economy is going to slow down, because the Federal Reserve is going to step on it. In fact, inflation is the only thing they can cure, so you can count on extremely restrictive monetary policy.

forward resistance

What makes this setup even more dangerous is the fact that it is now winning the season, which kicks off in earnest next week. It will be fun to see how the world reacts to this, mainly due to the fact that we have already started to see poor forecasts, and this will most likely continue to be a major headwind for the market. If we recover from here, it is likely that the market will find a lot of resistance near the 11,500 level. 50 days which is below the 12,000 level and is even lower.

At this point I suspect it will offer a significant amount of dynamic resistance, but it probably won’t even be tested as it’s more likely that not only a matter of time before we see some type of selling pressure again, or some type of headline that crosses the threads in order to cause negativity. That being said, we were a bit overloaded, so this relief rally might have a bit of a hard time going, but I see it as an opportunity to sell at a higher level before all is said and done. Level 12,000 is an area that I think will be a huge battleground assuming we even get there.

NASDAQ 100

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