Serger Berger is looking to sell short the Nasdaq 100 after the index Friday saw a bearish reversal that took bulls by surprise.
Going into Friday, the overnight markets seemed upbeat after rather hawkish comments from US Federal Reserve Chair Janet Yellen, Berger says. But by the time cash markets opened on Friday, the mood quickly soured and the Nasdaq 100 ended up closing in red, he adds.
Berger says this reversal is worth taking note off and sees as an indicator for further weakness in the near-term. He is looking to sell the US tech stock index at 103.20 or lower with a stop at 104.90 and his target for the trade is 100.50.