NASDAQ 100 Technical Analysis
The NASDAQ 100 has shown itself to be a little bit hesitant in the early hours on Tuesday, but at this point in time, I think it does make a certain amount of sense that we pause because quite frankly, we went straight up in the air and therefore it looks like a market that may need to perhaps grind away some of that excess froth, with a significant pullback offering the possibility of finding value. This will be especially true near the 19,750 level, and then after that, the 19,500 level, but the market is likely to continue to go higher and I do think we are going to try to take out the 20,000 level.
It really wasn’t that long ago that I thought the 20,000 level was going to be a situation where we get there eventually this year, but I didn’t think we’d get there anywhere near as early as we have. This does suggest that perhaps we have a scenario where we might enter another massive leg higher. It’s almost impossible to believe, but there’s really nothing on this chart that says otherwise.
So, in the short term, I’m a buyer of dips. I don’t really have any interest in trying to short this market. I believe that the 19,500 level will be a fairly significant floor in the market with the 50 day EMA approaching it simultaneously, therefore suggesting that it could be an important level to be aware of. At this point, I think that the feedback loop of buying should continue to drive this market more than anything else.
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This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
