Fawad Razaqzada, an analyst at City Index and Forex.com, said the key considerations for short-term stock traders after Tuesday’s modest pullback: But is this a similar scenario, or is it different this time around, especially with the US presidential election just three weeks away? ”
Razaqzada said the stock market has rebounded markedly in recent weeks, with the expected rise in U.S. inflation indicators, rising bond yields, geopolitical tensions, recession fears and a slowing Chinese economy. It claimed to be shaking off developments that should have caused a sell-off. Instead, the S&P 500 continues to hit new all-time highs. The Nasdaq 100 couldn’t follow suit, but did approach July highs before Tuesday’s chip-led pullback.
“The key for bearish traders is to still follow for now. If we see further weakness in the coming days, causing a collapse of some key short-term support levels, then only then,” he said. Traders will now have a solid reason to start selling.” I wrote. “On the other hand, bulls need to tread extra cautiously, tightening stop losses and watching for sudden changes, especially as Election Day approaches.”
The analyst said the primary support for the Nasdaq 100 is between 20,000 and 20,120, but a breakout of resistance between 20,210 and 20,325 would set the next upside target at 20,500, followed by the July high of 20,759. will continue. However, if the 20,000 support breaks down, the index could move back into the 19,635-19,715 range, justifying a more cautious stance.
