- The Nasdaq 100 rallied a bit during the trading session here on Thursday as we are breaking above the 25,000 level.
- The 25,000 level is a large, round, psychologically significant figure that a lot of people will be watching as we slice back and forth through it.
- The fact that we have seen this market go back and forth in this area does suggest it perhaps is losing some of its efficacy as resistance, and it's probably only a matter of time before the Nasdaq 100 truly takes off to the upside, as there have been a lot of buyers out there to take advantage of the momentum.
Short-Term Pullbacks
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Ultimately, I think short-term pullbacks continue to be buying opportunities because there's really nothing out there to suggest that we should be in trouble anytime soon. We've been on a nice 45-degree up-trend channel for a while, and now we have the uptrend line and the 50-day EMA currently at the 24,283 level and rising, offering a bit of a floor.
To the upside, I suspect that the 25,500 level is an area where a lot of people will be watching for potential resistance, but I think that it will be short-lived. All things being equal, we've been in a nice trend since May. I don't see much change at this point in time. It could be a little bit volatile from time to time.
But every time the market sees a drop here, it looks like it looks at it as potential value, as a potential buy on the dip type market. You have to watch the so-called “Mag Seven” as they tend to move the entire market, which they are doing fairly well during the session. So, we just continue the same grind higher.
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