Nasdaq 100 Reaches New All-Time High in First 10 Mins of 2020 Trading
The Nasdaq 100 just spiked to a new all-time high, as the stock markets extend last year’s strong uptrend. On December 27, the Nasdaq 100 futures reached a top of 8817 before trading lower and reached a low of 8868 on December 31.
Today, the Nasdaq 100 spiked above the December 27 high and created a new all-time high, and the breakout makes the December 31 low the next significant support level and trend defining level for short-term traders. I suspect traders will place their stops just below the December 31 low.
As the short-term trend is upwards above the December 31 low at 8668, the Nasdaq 100 might reach the monthly “Resistance 1 level” of the Pivot Point indicator at 8961, yet the very-short-term trend is overbought, so I suspect traders hoping for an excellent risk-reward ratio will wait for a 50% correction of the rally from the December 31 low.
The 50% correction level is at 8746, and if the index indeed reaches this level and then bounces back and reaches the monthly R1 level, it will provide traders with a risk-reward ratio of about 2.77 times their risk if the stop is placed below the December 31 low.
On the price trading below the December 31 low, the short-term uptrend in the Nasdaq 100 would probably be over, and the index would likely seek itself to the December 2 high of 8451, and around that level, I suspect long-term traders would be interested in increasing their exposure to the Nasdaq 100.