Nasdaq 100 Forecast: Index Ends The Week With A Whimper

The Nasdaq 100 initially tried to rally during the trading session on Friday but gave back the initial gains as we continue to be rather flat. This should not be a huge surprise though, because with Memorial Day weekend in the United States, nobody is at work on Monday. In other words, only the foolhardy and the gamblers are putting a lot of money to work, as you have seen of the last couple of days (NDX, QQQ).

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Adding more complacency to the market is the fact that the jobs number comes out on Friday, so it is very likely that we will continue to see a lack of momentum. Nonetheless, the futures market will be open for part of the day on Monday, and there could be a little bit of trading. The 50-day EMA underneath should continue to offer support near the 13,500 level, and it should be stated that the market is most at ease going higher, and I do think that we will eventually go looking towards the 14,000 level. That is an area that was the recent all-time high, and if we can clear that, then I think the Nasdaq 100 will probably go looking towards 14,500 rather quickly.

To the downside, the uptrend line and that 50-day EMA I mentioned previously are both support levels, especially with the 13,000 level backing up that uptrend line. After that, we then have the 200-day EMA, which is currently at the 12,500 level. In other words, I see a whole plethora of spots underneath that should attract a certain amount of attention and buying pressure, so I do not have a situation in which am looking to short this market. In fact, if we do break down below all of those levels, or at least some of them, I might consider buying puts, but I never short the US indices as they are too manipulated by central bank members and their actions and liquidity measures to bet against. If inflation continues to rise, the Nasdaq 100 might not be the best place to put money, but it should be positive in general. I have no interest in shorting, and I think that every time we pull back you have to be looking for signs of support in order to offer value.

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