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Nasdaq 100 Price Outlook: Tech Stocks Remain Bright Spot Amid Weakness

Nasdaq 100 Price Outlook: Tech Stocks Remain Bright Spot Amid Weakness

Peter Hanks, Strategist

Nasdaq 100 Forecast:

Nasdaq 100 Price Outlook: Tech Stocks Remain Bright Spot Amid Weakness

US equities stumbled into the close Monday as volatility ticked higher and risk appetite took a backseat to risk aversion, perhaps due to renewed lockdown measures. The Nasdaq 100 was able to eek out a minor gain nevertheless as it remained a bright spot amid broader weakness. The tech-heavy index’s standout performance marks a return to form that it lacked in December.

Nasdaq 100 Price Outlook: Tech Stocks Remain Bright Spot Amid Weakness

Source: Bloomberg

That being said, the Nasdaq 100 is not impervious to risk aversion and an upcoming FOMC meeting on Wednesday could stoke the flames if the Fed disappoints dovish expectations. Since multiple officials from the central bank have suggested more needs to be done on the fiscal side, deeper accommodation from the Fed seems unlikely at this stage. Thus, the modest uptick in volatility observed Monday should not be written off.

Nasdaq 100 Price Chart: 4 - Hour Time Frame (August 2020 – December 2020)

nasdaq 100 price chart

Encouragingly for bulls, the Nasdaq 100 enjoys a plethora of nearby support. First and foremost is the range derived from the September and November peaks, spanning from roughly 12,415 to 12,465. Secondary and tertiary support may reside near 12,258 and12,044 respectively. Each of the levels might provide early buoyancy in the event of continued bearishness as the weak progresses.

Stock Market Holiday Calendar 2020/21: Global Shares Market

--Written by Peter Hanks, Strategist for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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