S&P 500 & Nasdaq Analysis and Trends

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Nasdaq 100 Continues to See Upward Pressure
By: Christopher Lewis | March 12, 2024

• NASDAQ 100 Technical Analysis

Take a look at the Nasdaq 100 and you will see that we have bounced around a bit near the 18,000 level, while I record this, we are waiting on the CPI numbers. It’s a pretty simple formula, if it’s bad for the economy, it’s good for Wall Street, and that’s because they are looking for the latest handout. So if inflation comes in hot, it will more likely than not be negative for stocks. But if it comes in really weak, like the economy slowing down, then they’re going to be all about it and start buying again. That being said, I do think you have a bit of a channel going on at the moment.

It’s not a perfect channel, but it is close enough that I think you have to pay close attention. Ultimately, this is a situation where market participants will continue to look at dips as buying opportunities, treat them as such, and take advantage of cheap contracts. The 20 day EMA continues to offer support and the 18,000 level, I think more or less is going to be an area where people pay close attention just because of the psychology involved.

I don’t know if there’s any significant support or resistance there, it’s just a round number. We are in an uptrend and it’s difficult to fight this uptrend, so I do think that every time it pulls back, you have to be looking at it through the prism of potential value in this environment. If we do break down, I think there’s plenty of support not only at the bottom of the channel but perhaps the 50 day EMA as well.

The NASDAQ 100, of course, is driven by a handful of stocks because it is not an equal weighted index, and of course, it’s a momentum driven index most of the time anyway. Because of this, I’m sure there are plenty of buyers.

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