- The NASDAQ 100 was volatile on Wednesday, swinging on early panic before stabilizing.
- Despite brief selling, the market remains bullish, targeting 26,000–26,350, with potential for a year-end “Santa Claus rally” if support near 25,000 holds.
The NASDAQ 100 has been very noisy during trading on Wednesday, initially breaking higher but then turning around in a weird moment of panic at the open. It was fairly well contained, but it was interesting to see that the market just chose to start selling off as soon as New York came on board. Nonetheless, we're still in a very bullish market at the moment, and I do think that it is probably only a matter of time before we break higher and go looking to the 26,000 level.
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Underneath, we have plenty of support near the 25,000 level, right along with the 50-day EMA and the trend line. Keep in mind that a lot of people are out there looking for handouts from the Federal Reserve in the form of rate cuts. They're looking for the government to reopen to give them a reason to go higher. This is a market that's just looking for any excuse, whatever, to rally. So, there's no point in arguing it.
Its Still the Same Seven
That being said, the same seven stocks continue to move everything. So keep an eye on the Magnificent Seven, but also keep an eye on the 50-day EMA and the trend line underneath, because if those get broken, then the NASDAQ 100 may have a much deeper correction. Ultimately, the 26,350 level is basically your swing high that we're trying to get to. If we can break that, then I don't see anything keeping the NASDAQ 100 from going to the $27,000 level over the longer term.
We also have to keep in mind that there could be a bit of a Santa Claus rally, and that Santa Claus rally typically is at the later part of the year when money managers try to chase performance due to their own underperformance earlier in the year, thereby causing a bit of a feedback loop as other traders are aware of this and start buying things also.
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