Nasdaq 100: Elevated Record Level and Swift Speculative Bets

The Nasdaq 100 powered above the 25,000 level yesterday, a high of nearly 25,067.00 was seen. As of this morning’s writing via futures trading the Nasdaq 100 is around 24,870.00.

The U.S stock market indices are trading as if they are carefree even while the U.S government shutdown remains in full force. The Nasdaq 100 is key evidence. The index powered over the 25,065.00 level yesterday while creating new highs and surpassing Monday’s apex levels. However, a reversal lower did occur after Tuesday’s record breaking performance, and by late yesterday the 24,775.00 was being challenged below.

The Nasdaq 100 today in early trading via futures is near the 24,870.00 ratio. While certainly not above the 25,000.00 mark, the index remains within elevated terrain. U.S investors upon returning to their desks in a few hours will continue to trade based on behavioral sentiment. The U.S shutdown appears ready to linger and this may start to play a negative role in mindsets, but perhaps long-term investors simply do not care and will continue to see potential value.
 

Day Trading Amidst Fast Conditions

Fast trading conditions are being demonstrated in the U.S equity markets, the record highs being assaulted are also sparking profit taking by large speculators causing reversals lower. Day traders who are active in the Nasdaq 100 need to remember the speed in the indices remains attractive, but also very dangerous. Pursuing a trend higher is enticing, but conservative wagers may want to wait for support levels to be perceived.

Yesterday’s low in the Nasdaq 100 around 24,775.00 is of interest. Perhaps this means that durable support this morning may technically be thought to be around 24,800.00, but waiting for this ratio to be challenged could mean that a speculator waiting for more upside to develop will miss out on opportunities. Because it is quite possible the 24,800.00 may not be seen in the short-term and the Nasdaq 100 could linger far above it and simply find its way higher once again.
 

25,000 Level as a Nasdaq 100 Milestone

Numbers matter in trading via levels as psychological targets for all traders. The 25,000 milestone having been attained in the Nasdaq 100 is significant.

• However, the inability the past two days to sustain the 25,000.00 ratio is also tempting as a signal for day traders.
• If the Nasdaq 100 is penetrated above the 25,000 near-term and sustained this could set off another round of buying to come into the market which propels the index even higher.
• Conservative traders can look for lower ground in the Nasdaq 100 via selling, but fighting the current trend may prove costly.
• Large players seemingly still believe market upside is what folks will aim for and the target of 25,000.00 is certainly within the mindset of speculators.
• Trading has been fast and it will remain this way, risk management is essential while pursuing the Nasdaq 100.
   

Nasdaq 100 Short-Term Outlook:

Current Resistance: 24,895.00

Current Support: 24,865.00

High Target: 25,100.00

Low Target: 24,810.00
 

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