FxWirePro: NASDAQ100 looks wobbly compared to other U.S. benchmark indices

We at FxWirePro were short on the European blue-chip index Eurostoxx50 before the global stock market selloffs that rattled investors’ nerves in late January and early February and after the selloff, we turned bearish on several European benchmarks; Spain’s IBEX35, Germany’s DAX, France’s CAC40 and United Kingdom’s FTSE100. You can check out some of the articles on European bourses here,

Eurostoxx50:

http://www.fxwirepro.com/fxwire/popup/newsPopup?id=777979, https://www.econotimes.com/FxWirePro-Call-Review-Eurostoxx50-short-target-revised-from-3100-to-2800-1146997

DAX:

https://www.econotimes.com/FxWirePro-Call-Review-DAX-outlook-revised-from-bullish-to-bearish-1147363

IBEX35:

https://www.econotimes.com/FxWirePro-Sell-IBEX35-targeting-7800-area-1158558

CAC40:

https://www.econotimes.com/FxWirePro-CAC40-trapped-in-Bull-Bear-fight-Sell-targeting-another-10-percent-drop-1152851

While our forecasting models suggest that the European bourses are likely to decline further, that is not the case for their North American counterparts. The American bourses not only have the support of an accelerating economy but tax cuts and reforms as well. Our forecasting models suggest that both S&P500 and Dow Jones Industrial Average are likely to hit new record highs if the recent support area holds. However, that doesn’t seem to be the case for NASDAQ100, which is looking somewhat wobbly.

NASDAQ, which is trading at 6820 is currently trapped in a Bull/Bear fight. Bulls are looking to push the index to 7150 in the current run, whereas the Bears are looking to push the index towards 5500 area. It could be the rumor that the Trump administration is considering sales taxes for IT companies; it could also be the fact that other countries might take up steps (in terms of taxes) against U.S. technology companies in response to President Trump’s protectionist agenda, which are clouding the bullish outlook for NASDAQ100.