- While buyers continue to emerge on each dip, the NASDAQ 100 saw some buying pressure near the 20-Day EMA after falling initially during the Monday trading session.
- This pattern has persisted for a while, and it doesn't appear to be changing anytime soon.
NASDAQ 100
In order to reach the 20-day EMA early in the Monday trading session, the market first pulled back before turning around and exhibiting signs of life. If we do this, it's likely that the general uptrend will continue, and I do believe that the market is still seeing a lot of buy on the dip activity. We are in something of a perfect 45 degree uptrend, so that does make some sense if we can keep moving higher and possibly even reach the highs once more.
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That being said, I think it's a good idea to profit from short-term declines, but I also understand that while the market is currently positive, it's also quite erratic because there is a lot of back and forth. I'm not interested in shorting this market either way. Naturally, a large portion of passive investment will continue to flow directly into artificial intelligence (AI) and related businesses, supporting the Nasdaq 100. Thus, as long as the few companies that actually drive the majority of the market waiting continue to get bought into, the Nasdaq 100 will continue to perform well.
The 50 day EMA is the next significant support level, and even if we do break down from here, it would be a respectable retracement. Because it would provide some kind of value, we would likely be more bullish than bearish on this one. We just don't seem to have it right now, and it appears that the market will just keep following the same pattern until something changes on a larger scale. In the end, I believe that momentum drives this market almost exclusively, and I don't see that changing anytime soon. This will collapse eventually, but it is far from happening at this time.
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