Nasdaq 100 Price Analysis — January 12

Wall Street saw a red trading session on Monday, as investors cashed out their profits after a bullish start to 2021 and amid worries of the political situation in Washington. The Nasdaq 100 (NDX) shaved off about 1.5% from its value after hitting a new all-time high at 13100 last week.

Last week’s rally got induced by the Democratic win in the Georgia runoff elections, which investors saw as a pointer for an additional fiscal stimulus package to bolster the pandemic-ravaged economy.

However, some investors are worried that stimulus measures could be put on hold as House Democrats begin processes to impeach US President Donald Trump, as he is accused of inciting an insurrection, following the violent attack on the Capitol by his supporters last week.

Meanwhile, Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts, has noted that investors are worried about more attacks. According to a federal law enforcement source, the FBI has warned that there could be an armed protest for Washington, and across all 50 US states, in the run-up to Joe Biden’s inauguration on January 20.

However, the US Treasury bond yields soared as safe-haven assets came under pressure yesterday, with sectors like energy and finance gaining immense demand, while defensive bond proxy sectors like utilities and real estate plummeted.

Nonetheless, investors are still optimistic about additional stimulus measures in the US.

Nasdaq 100 (NDX) Value Forecast — January 12

NDX Major Bias: Bullish

Supply Levels: 13000, 13100, and 13200.

Demand Levels: 12900, 12793, and 12650.

The NDX fell yesterday after recording a new ATH at 13110 last week. This fall will likely serve as a correction for the index, albeit a fundamentally-induced decline. That said, the 12900 support has effectively repelled the attempt by bears to take the price lower.

We expect a bounce to the 13000, and possibly higher, once again in the coming hours.

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