The Nasdaq 100 index is the weakest among its peers this week, as the tech sector is on a bearish path. It closed lower over 2% yesterday, and the decline triggered a bid in the dollar too.
The rising long yields in the United States are a problem for stock market enthusiasts due to the fact that the yields now exceed the dividend yield. As such, there is not much of an incentive to remain invested in stocks at such high valuations, and everyone looks for a healthy correction. If this is the sign of such a correction, the Nasdaq 100 index still has some room to go, should it break dynamic support.
As this is the first trading week of the month, the focus will be on the NFP tomorrow. Also, Fed’s Powell speech today may move the stock market as well.
Nasdaq 100 Technical Analysis
The technical picture shows the Nasdaq 100 index at dynamic support, after it got rejected at dynamic resistance. At this point, bears may want to wait for the index to post a daily close below the support before going short with a take profit at the measured move. On the flip side, a move back above the previous lower high will invalidate the bearish scenario.
Nasdaq 100 Price Forecast