Nasdaq 100 Price Analysis — December 22

Wall Street slipped lower in the early hours on Monday, with the Nasdaq 100 (NDX) falling as much as 1.4%, before rebounding and climbing higher. Meanwhile, Tesla (NASDAQ; TSLA) got most of the attention, as today marks the first day that the electric vehicle manufacturer’s stock will trade on the S&P 500 index (SPX).

Meanwhile, six new stocks—including Peloton, American Electric Power, Marvell Technology Group, Match Group, Okta, and Atlassian—have joined the NDX index, with varying levels of success.

Tesla shares were down by about 5% on Monday. The stock has been on a massive rally following anticipation of today’s SPX inclusion. TSLA has rallied from $400 to $695 and has recorded a market capitalization of $600 billion since the inclusion was announced. That said, it appears that bulls are currently getting a well-deserved breather.

In other news, this week will be the last full week for liquidity, as we round off the year. While there are still about two trading weeks left for the year, the NDX will likely trade on a very choppy and low-volatility momentum.

With most of the biggest economies going into the holiday on Friday or next Friday for the Christmas and New Years’ holidays, investors will be very cautious against placing any aggressive bets.

Nonetheless, between new record highs, unfulfilled fundamental expectations, and seasonal momentum, the probability of seeing an erratic market in the coming session remains high.

Nasdaq 100 (NDX) Value Forecast — December 22

NDX Major Bias: Bullish

Supply Levels: 12793, 12800, and 12850.

Demand Levels: 12700, 12645, and 12600.

Following a sharp drop to the 12480 support, the NDX has found significant buying pressure and has regained stability above the 12700 psychological levels (pre-market data). That said, the index will likely reattempt—and possibly break—the 12793 all-time high.

On the flip side, we could see another drop to 12645 as volatility thins out.

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