Is the “Santa Rally” on the Nasdaq 100 Coming to an End?
The Nasdaq 100, a key player in the US stock market, has hit a roadblock in its bullish momentum. After reaching a fresh all-time high of 22,133 on December 16, things took a turn for the worse. The Federal Reserve’s recent monetary policy announcements have sent shockwaves through the market, leading to a 4% loss for the Nasdaq 100 in just one day.
Technical Indicators Point to a Potential Correction
Technical analysis experts are now sounding the alarm bells, pointing to weakening momentum and market breadth on the Nasdaq 100. The percentage of component stocks trading above their moving averages has significantly dropped, indicating a possible medium-term corrective decline in the coming weeks.
The Critical Level to Watch: 20,790
As the Nasdaq 100 hovers above its 50-day moving average, all eyes are on the critical support level of 20,790. If the index breaks below this key level, it could trigger a multi-week decline sequence, potentially reaching medium-term supports at 19,840 and 18,310.
Expert Insights and Future Outlook
Market analysts are closely monitoring the situation, keeping a close watch on key resistance levels that could either confirm or invalidate the bearish scenario. The next few weeks will be crucial for the Nasdaq 100 as investors brace themselves for potential market volatility and corrective movements.
As the Nasdaq 100 navigates through uncertain waters, investors are advised to stay informed and cautious in their decision-making process. The future of the “Santa Rally” hangs in the balance, with the possibility of a significant downturn looming on the horizon.
In times like these, it is crucial to rely on expert advice and stay updated on market trends to make informed investment choices. Remember, the market is always full of surprises, so buckle up and stay prepared for whatever comes your way.