Nasdaq Forex Signal: Defends 28,500 Support As Buyers Return

Potential signal:

• I am a buyer here.

• However, I have a stop at the bottom of the day, and am aiming for a move to 30,100.

The Nasdaq 100 continues to be very noisy on Friday, as traders are looking ahead to the weekend and all of the potential market-moving headlines that could come out.

Nasdaq100

Nasdaq 100 spent the better part of the early Friday session falling apart and reaching towards the 28,500 level. The 28,500 level is an area that has been supported over the last couple of weeks. In this environment, it's not a huge surprise to see that buyers have returned to defend the Nasdaq 100 and, quite frankly, keep the market in the same consolidation area it had been in.

If the market were to bounce from here, then it would be a repeat of what we've seen over the last couple of weeks. If it breaks down from here, then it could lead to a little deeper correction, but quite frankly, from a technical analysis standpoint, this looks a lot like a bullish flag.

If the market were to break above the 31,000 level, then it would confirm that pattern, and traders would more likely than not try to reach the measured move, which could lead all the way up to 37,000.

Geopolitical Pressures and Market Volatility

In the meantime, expect a lot of volatility. There are headlines coming out of the Middle East that will continue to rock the markets and continue to cause major headaches for all involved, and of course, interest rates continue to be in flux as well.

With this, I think you have to look at the market as one that remains noisy but one that certainly seems to see a lot of potential support and strength just below. The question really at this point in time, as we head into the weekend, is probably one of whether or not there was buying on the way out the door for the weekend or if it was short covering. Either way, it looks like support is trying to hold.