Nasdaq 100 Hits Overhead Resistance

Stocks in the US have been on a wild ride since Thursday morning’s CPI release.

The Nasdaq 100 (NQ) gained 2.2% that day, followed by a 3.1% decline on Friday and a 3.4% rally yesterday.

Needless to say, the market has been volatile.

But with today’s initial rise bringing the NQ up to down trending resistance and running out of steam, the next move could well be lower again…

Trying to Sell the High

Here’s how we see the market shaping up for the Nasdaq 100 Index futures contract…

Daily Chart of Nasdaq 100 Index — Source: TradingView

The NQ daily time frame is in a down channel. The market hit the top of the channel and is now pushing bearish towards the bottom of the channel.

There is a down Fibonacci with an extension price point 9,595.25, about -6,966 ticks below the market.

The market formed a low price and is pushing towards a future high price. The market is hitting an inner down trend line, which could push the market back down.

If the market is able to close above the inner trend line, it is expected the market to keep pushing higher towards the outer trend line.

Unless the inner trend line is broken, it will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.

The Bottom Line

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Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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