Nasdaq 100: Bearish Signals Amid Increased Volatility

As revealed by the technical analysis of the 4-hour Nasdaq 100 chart (US Tech 100 mini on FXOpen), the ATR indicator has been above 125 since the start of 2025, in contrast to late 2024 when it was mostly below this level. This reflects heightened volatility in the US stock market due to:

→ Trump’s inauguration: The president has already signed an executive order withdrawing the US from the World Health Organization. Market participants anticipate further decisions in the near future that could significantly impact the nation’s economy.

→ Earnings season: Companies are releasing reports, prompting analysts to revise forecasts. For instance, a Jefferies analyst downgraded Apple’s (AAPL) stock rating and lowered the price target from $211 to $200, citing potentially weak revenue figures. Apple’s quarterly report is due on 30 January.

On the Nasdaq 100 chart (US Tech 100 mini on FXOpen), a bearish move (indicated by the arrow) is notable for:
→ Indicating that the median line of the ascending channel has turned into resistance;
→ Suggesting that the apparent bullish breakout above the upper red line now seems to be a false breakout.

The long lower wick on the far-right bearish candle points to strong demand around the 21,300 level. However, will buyers remain active if Trump’s actions and corporate earnings reports increase risks for them?

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