European and US stock markets have been under pressure in the last three days on profit-taking following the major US stock markets reaching new all-time highs. However, as the Nasdaq 100 chart looks like this morning, it looks like the price is trying to bottom out.
The stabilization the Nasdaq 100 is happening at the 61.8% Fibonacci correction level of the bull-leg from the July 9 low to the new all-time high at 7983, and following a 2.11% drop from the high.
As the stabilization of the index is happening at the right level, I suspect traders will be rebuilding long positions at the current levels, with their targets aimed at the all-time high and beyond. However, if the index trades lower and fails to hold above the July 9 low of 7718, then the short-term trend would be over and I would suspect that speculators will target the next low, the June 25 low at 7582.Don’t miss a beat! Follow us on Twitter.
Download our latest quarterly market outlook for our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.