- The Nasdaq 100 initially pulled back a bit during the trading session on Tuesday only to find buyers again and turn things around.
- By doing so, it looks as if we are going to try to form a hammer but let us not forget the end of the session on Wednesday brings us earnings reports from Nvidia, one of the biggest moments for the market as it is everything for some people out there.
Nvidia is 14 % of this index. So as Nvidia goes, generally speaking, so goes NASDAQ 100. Short-term pullbacks at this point could open up possible attempts to test the 23,250 level, an area that has been very important multiple times on short timeframe charts uptrend line continues to be a major factor in this market, and we have respected it since the end of May between that and the 50 day EMA sitting just below there. This could bring in a bit of support as well and will obviously attract a lot of attention by technical traders especially.
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It does look like a market that wants to go higher eventually, perhaps trying to challenge that crucial 24,000 level on a breakdown below the 50 day EMA. We could challenge the 22,250 level before it's all said and done. Nonetheless, the Nasdaq 100 is bullish. We are basically trading in a bit of an up trending channel.
Until that changes, you really can't consider shorting short-term pullbacks continue to be buying opportunities. I think that will remain the case. However, again, you have to pay attention on Monday because everybody will be waiting around to see what NVIDIA does. After all, as NVDA goes, so goes the overall market. The next 48 hours could change a lot of momentum.
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