The NASDAQ 100 continues to see downward pressure on Tuesday, as the Artificial Intelligence trade seems to be struggling yet again. The trend is still positive, but we are going to have some bumps I believe.
NASDAQ 100
The Nasdaq 100 has fallen hard during the trading session here on Tuesday as we are hanging around the 50-day EMA now. That being said, this is a market that I think, given enough time, will try to turn things around, and the 50-day EMA could be an area that we see a bit of buying pressure. If we were to break down below there, then the 28,500 level could be a bit of a floor as well. Anything below there opens up a much deeper correction, perhaps down to the 27,000 level, but given enough time, I would look to see some type of buying on the dip opportunity.
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The Symmetrical Triangle and AI Concentration Pressures
The market rallying from here will face a certain amount of resistance near the 30,000 level, which is a large round, psychologically significant figure and an area that's been somewhat difficult to break above. Previously, we had seen this market try to start some type of symmetrical triangle, and this has just pierced the bottom of what that could have been. We'll just have to see how the day closes on Tuesday.
Ultimately, we're still very much in an uptrend, but keep in mind that a lot of what's weighing the Nasdaq 100 down right now is the artificial intelligence trade getting hammered. If that's going to end up being the same theme going forward, that could really put a lot of pressure on the Nasdaq 100, as it is so highly concentrated in just a handful of stocks. That being said, when you look at the longer-term trend, it still looks like it's somewhat healthy. We're just chopping around after what had been a ridiculous shot higher starting in April.
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