Nasdaq-100 Index: Excellent opportunities

The NASDAQ-100 Index is a modified capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985.

11 JUL 2018

The outlook on all time frames is precarious. A major consolidation pattern in the multi-year uptrend is unfolding, of which a DT is the most recent sign of weakness. Chances of a rather deep correction are significant, as is down side potential. The first levels of noteworthy support come in as low as 6750 <> 6670. Here a cluster of internal trend lines fall together. Slightly below this area the weekly cloud support is found (~6480).

The Nasdaq-100 is an absolute exit-long, especially below the minor support at 7120.

  • Near term trend: negative
  • Long term trend: neutral (double top)
  • Outlook: potential trend reversal
  • Strategy: exit-long / short-entry < 7120
  • Support: 7120 / 6750 / 6670 / 6480-
  • Resistance: 7300
  • Outlook cancelled/neutralized above 7300

Daily chart Nasdaq-100 Index

23 APR 2018

The outlook on all time frames looks rather precarious. The recent recovery move is classified as a regular (albeit fierce) counter trend move within the down trend that commenced mid-March. In other words, sellers still hold the edge.

For the longer term things are quite fragile. A large double top pattern is unfolding with key support at 6400. However, if the near term down trend continues (with a conservative target of 6065), this will automatically mean that the DT is also completed, thus triggering a trend reversal on the weekly charts as well. Levels below 5700 then come into play (6+ month horizon).

Due to the large down side risk and critical resistance and stop levels nearby, we see the Nasdaq-100 index as a prime opportunity for building short-exposure to the broader market. All bets are off with a close above 6900.

  • Near term trend: negative
  • Long term trend: neutral (double top)
  • Outlook: potential trend reversal
  • Strategy: short < 6450
  • Support: 6450 / 6400 / 6238 / 6005 / 5690*
  • Resistance: 6900 / 7020 / 7140
  • Outlook cancelled/neutralized above 6900

420-minute intraday chart Nasdaq-100 Index