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? ”
Razakzada said the stock market has seen developments in recent weeks that should have caused a decline, including rising U.S. inflation indicators, rising bond yields, geopolitical tensions, recession fears and a slowing Chinese economy. He shook it off and claimed that he was making an amazing recovery. 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.”
According to the analyst, the primary support for the Nasdaq 100 is between 20,000 and 20,120, but if it breaks through the resistance at 20,210 to 20,325, the next upside target will be set at 20,500, and then 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.
