- The NASDAQ 100 rallied a bit during the course of the trading session on Tuesday, as we continue to see a little bit of a risk on the move.
- We have recently bounced from the crucial 200 day EMA and that of course is a technically bullish sign.
- For what it is worth, it looks like we are trying to get towards the 19,000 level, an area that obviously is a large round psychologically significant figure.
We also have the 50 day EMA above offering a certain amount of resistance. I think that makes for a nice target if we continue to see bullish pressure, but I also recognize that there are a lot of concerns out there and this recent sell off has been rather drastic. The question now is whether or not risk appetite is truly going to come back into play. Germany has recently fallen back into recession. So that shows you that there are going to be a lot of concerns globally.
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Noise Continues to be the Norm
I think this continues to be a very noisy market, and at this point, although we have balanced significantly from the 200 day EMA, economic numbers in the United States continue to get worse. And while it could bring in a Federal Reserve rate cut, the reality is that by the time the Federal Reserve starts cutting rates, it's normally too late and the economy starts to fall apart.
It is because of this that we will continue to see noisy and erratic trading. And I would keep a close eye on the 50 day EMA because if we were to break above there, then we could see a move much higher. The 200 day EMA of course should continue to offer support, at least in the short term. I don't think we're anywhere near testing it, but right now the question is, can we keep up the momentum? I think that's the entirety of the markets, not just the NASDAQ 100 for that matter.
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