Nasdaq 100 Price Analysis — January 29

Wall Street traded on mixed sentiment on Thursday as investors took cues from the latest earnings reports and signs that a big squeeze in shorted stocks will persist for a while.

The Nasdaq 100 (NDX) recorded a 1.5% jump to the 13400 resistance before dropping near its open level, or 0.68% around 13200 at the close of the market yesterday.

Meanwhile, US shares recorded their sharpest decline in over three months on Wednesday amid a coordinated squeeze by retail traders on hedge funds holding short positions in stocks like GameStop (NYSE: GME).

This market turmoil caused some investors to seek refuge in the US dollar, as yields on the 10-year US Treasury bond were flat.

Ned Rumpeltin, the European Head of Currency Strategy at TD Securities, stated that the markets “smells like blood.” He noted that investors remained on the sidelines on Wednesday ahead of the US Federal Reserve statement. He believes that more investors should be coming on board now that the event is in the past.

Rumpeltin added that retailers could get induced to cash out their profits as we head into the weekend.

In other news, earnings reports are due from American Airlines (NASDAQ: AAL), Mastercard (NYSE: MA), Mcdonalds (NYSE: MCD), Dow Chemicals (NYSE: DOW), JetBlue Airways (NASDAQ: JBLU), Amazon (NASDAQ: AMZN), Mondelez (NASDAQ: MDLZ), and Visa (NYSE: V).

Nasdaq 100 (NDX) Value Forecast — January 29

NDX Major Bias: Bearish

Supply Levels: 13300, 13400, and 13500.

Demand Levels: 13110, 13000, and 12900.

The NDX appears to have gone into a bearish spiral to the lower end of our ascending channel around the 13000 round figure. This projected decline is confirmed by the recent formation of a double-top pattern at the 13400 resistance. We expect to see a healthy rebound from the 13000 support in the coming hours and days.

That said, a sustained decline from the 13000 psychological should be adequately repelled by the 12900.

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