The Nasdaq 100 has experienced another round of selling early this morning via futures trading, and is near the 24,468.00 with fast conditions apparent, which should serve as a warning to day traders that they should be cautious today.

On Wednesday of last week the Nasdaq 100 was shining within record apex values as the 25,200.00 level was attained amidst bullish temptations. All things in the index continued to look positive, but on Friday a surprising remark from President Trump sent the Nasdaq 100 into a quick tailspin lower when he said the White House would penalize China with more severe tariff penalties due to tensions regarding trade policy.

The Nasdaq 100 touched a momentary low of nearly 24,010. The speed of the price velocity lower caught large investors and certainly day traders off guard. While yesterday’s opening for the Nasdaq 100 provided a gap higher and the 24,600 and even the 24,800 saw some temporary challenges higher, selling came into force again. This morning’ early trading in the futures markets continues to show signs of short-term nervousness.
 

Looking for Value and Durable Support Levels

Day traders who believe that the sudden round of selling in the Nasdaq 100 is based on nervous sentiment alone because of President Trump’s rhetoric may be tempted to jump in a the current levels and look for higher values. However, caution is strong advised and risk management is certainly needed. While China and the U.S will try to deescalate the tensions regarding their trade talks, some financial institutions may believe all things will turn out well. But does this mean that they will also start to buy the Nasdaq 100 again in the near-term?

Support levels for the Nasdaq 100 around the 24,450.00 to 24,430.00 may provide tempting places to look for upside for speculators. Yet the ability to nosedive on Friday to lows within sight of 24,000.00 after being above 25,000.00 only a handful of hours before should make day traders nervous, and spell out the need for stop loss orders to be working. The Nasdaq 100 was within record levels and profit taking per large speculative players may have also been an ingredient for the wickedly fast selling on Friday.
 

Near-Term Speculation and Sentiment

It will take several hours of sustained trading above the 24,500 level for traders to begin feeling confident again about upside and the ability to re-challenge apex levels seen only a few days ago.

• Short-term nervousness is likely to remain part of the Nasdaq 100 as some investors question current values and what will drive the index upwards.
• Outlooks likely remain optimistic for the Nasdaq 100 among investors, but nervous sentiment certainly showed it has substantial ability to cause a selloff in a fast manner.
• Day traders should be careful today and tomorrow in the Nasdaq 100.

Nasdaq 100 Short-Term Outlook:

Current Resistance: 24,470.00

Current Support: 24,440.00

High Target: 24,620.00

Low Target: 24,380.00

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