The Nas100 is at an important cross road after the close of the monthly candle of September 2022. The manner in which the monthly candle has closed may indicated that the Nas100 just gone from bull
and now into an official bear market according to price behaviour. We can also see that price has created a change in market structure by means of a new low, which may signal the start of a bear market.
This type of price behaving was last seen in 2008 when the Nas100 went into a correction of about 40% before creating a market bottom. We expect that a similar type of correction is on the cards this time
around. Since are already in a correction we could see a further decline of between 20- 37% resulting in a total of between 43% - 57% decline since the peak formed in November 2021.
This is in line with the interest rate hikes currently taking place in the US and around the world, as central banks try to control the ever increasing inflation, which will lead to a slow down in economic
growth, a fall in company profits and result in job losses and a fall in consumer spending. The issues taking place in other part of the world such as the war between Russia and Ukraine and the covid19
lockdowns in China, one of the worlds largest economies is also not helping current global economic lock which puts further pressure on central banks to keep in hiking rates in the bid to bring down inflation.
Comment:
Nas100 remains bearish....US CPI came in Hot at a 40 year high, this means the Fed is likely to carry on with interest rate hikes.Nas100 might recover into Q3 2023 but for now we looking for sells only!