NASDAQ 100 Price Forecast: Analyzing Momentum Following Recent Federal Reserve Rate Cuts
Recent Momentum in NASDAQ 100
The NASDAQ 100 rallied in the early hours on Thursday as traders reacted to the Federal Reserve's surprising interest rate cuts. A reduction of 50 basis points exceeded expectations and has led Wall Street to celebrate enthusiastically. However, caution is warranted as the Federal Reserve does not typically cut rates significantly unless serious issues are at play.
Resistance and Support Levels
The market is now approaching a significant resistance barrier at 20,000. Observing how this plays out is crucial, as historical market behavior may influence traders' decisions. If the index experiences a pullback, expected support is at the 19,500 level, possibly extending down to the 19,300 level. Breaks below these levels could trigger further selling pressure.
Market Sentiment and Economic Factors
Animal spirits seem to be re-entering the market, suggesting higher long-term trends are favorable. However, it is important to note that yesterday's close after the interest rate announcement did not display strong bullish momentum. Monitoring future economic indicators will provide better insights into market direction.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.