Nasdaq 100 Price Analysis — September 25

Nasdaq 100 Price Analysis — September 25

Q3 is not turning out fine for the equity markets as many had expected. After what could be described as one of the sharpest bull runs over the past six months, American equities have come under serious selling pressure in September.

While there’s high optimism over a possible vaccine by the end of the year, it appears that ‘normalcy’ will not be restored until next spring or summer at best. This, coupled with the upcoming Presidential Election in the US and the political stalemate over the next round of fiscal stimulus in Congress, sets the equity markets for a rocky Q3 and Q4 ahead.

The post-March rally saw the Nasdaq 100 (NDX) grow by as much as 88% from March’s low to September’s high. The Dow Jones (DJIA) and the S&P 500 (SPX) were not left out of the bull run, as both rose by over 60% from March to September.

What makes it even more unbelievable was that these sharp rallies occurred at a time when the world was battling a deadly pandemic that brought many businesses and governments to its knees.

NDX – Daily Chart

Nasdaq 100 (NDX) Value Forecast — September 25

NDX Major Bias: Bearish

Supply Levels: 11050, 11307, and11650.

Demand Levels: 10720, 10520, and 10300.

The NDX remains in a downwards spiral as the ‘effect of the season’ begins to set in. The index has now recorded a new two-month low at 10677, just a few days ago.

Some bears have even set their eyes on the 10k psychological level in the longer-term. However, to reach that level, the Nasdaq 100 will have to break below the confluence of indicators around the 10520 area (support level and 100 SMA).

Meanwhile, sellers will now be taking advantage of previous support-turned-resistance levels. One such line is the 11050 resistance, which is now a trap area for bulls.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.