Nasdaq 100 Forecasting: Following a positive breakthrough in the past few days, the Nasdaq 100 gathers upward and hits its highest mark before the beginning of 2022.

Key Highlights

Although the market’s technical picture continues optimistic.  The Federal Reserve might put a stop to the Wall Street celebration.

The FOMC is expected to keep rates unchanged at their Dec gathering, though policy advice could sound aggressive. CPI & PCE will be reviewed.

As investors concentrated on inflation statistics that exceeded analyst expectations, the S&P 500 finished around 4640.

The value of the Nasdaq 100 is rising since demand for shares of technology remains robust.

The Dow Jones index attempts to try to break through the hurdle zone of 36,350 to 36,500 zone.

S&P 500 Index

The S&P 500 adds territory as investors respond to inflation statistics from the United States. Prices fell from 3.2 percent in Oct to 3.1 percent in Nov. Dropping short of the expert expectation of 3.1 percent. The core rate of inflation stayed constant, as expected by analysts. Following the unveiling of the statistics, equities dropped down from session peaks. Since investors expected a greater decline in prices. Yet, buyer interest in stocks stays robust, so the S&P 500 has returned to the 4640 mark. The market mood is upbeat.

Source: TradingView

On Tuesday, the Nasdaq index and S&P 500 maintained up.  It ended at the most recent highs as of the beginning of 2022. Maintaining the trend upward after breaching critical levels of resistance early in the course of the week. Amid decreasing US bond rates.

While shares keep positive technical characteristics, the good times may come to an end shortly.  Should the US Fed steps in to stifle Wall Street excitement in order to contain the detrimental and uniform repose of financial situations. Thereby jeopardizing initiatives to regain price equilibrium.

The FOMC will make the final choice of the fiscal year on Wed evening, at the conclusion of its 2day meet. According to forecasts, the Federal Reserve will keep borrowing rates steady for its third consecutive meeting. Although it may take a hardline stance in response to traders’ strong rate drop bets.

Rate projections have swung in a softer tendency during the last month. And investors forecasting over 100 bps of lowering until 2024. This possibility looks radical and contradictory to the present economic backdrop of robust employment numbers. With persistent price increases, hence it wouldn’t be very shocking to observe officials take an altogether contrary stance.

67 percent of traders are  of clients are net short.

Nasdaq 100

The ticker “NASDAQ” is gaining momentum as demand for technology equities remains higher.  Following the publication of CPI figures. The index features no huge winners currently. Though The bulk of its segments are heading upward.

Investors ought to be aware of the fact that RSI is currently near to the severely overheated zone, raising the prospect of a drop.

Source: TradingView

Nasdaq Technical Analysis

On Tuesday afternoon the Nasdaq continued its gains, breaking over trend line barrier at 16,500. Should this positive breakthrough hold, the technology index is expected to hold higher in the next days ahead.- Setting the stage towards a second test of its all-time record high. With additional growth, a fresh record over 17,000 might be reached by the end of the calendar year.

Assuming mood shifts again in the direction of selling and adverse demand increases.  the first support is located around 16,500 mark. Then follows 16,150-16,050 levels. Upon a retreat, this second zone may give some cushion to the stock market, although its complete collapse could allow up the way to a fall around 15,700 level.

Daily- Technical Indicators