The NASDAQ 100 continues to see somewhat bullish behavior, but we also are seeing a bit of a struggle, as if we are “walking uphill” at the moment. Sluggish, yet bullish I believe is the best description of things.
NASDAQ 100
The Nasdaq 100 continues to be noisy on Monday as we are now above the crucial 25,000 level, but it’s not exactly as if the Nasdaq 100 is screaming to the upside. After all, we have the 50-day EMA sitting just above the current level. I think there is a little bit of a technical barrier.
If we can break above there, then the market is likely to go looking to the 25,750 level followed by 26,275. If we can break above that 26,275 level, that’s obviously a fresh new high and we go much higher. This is what I expect, but it will take time in this environment.
Market Consolidation and Support Levels
However, with the price action on Monday, it suggests that we are going to have to consolidate a little bit, perhaps even pulling back enough to find value. That would make a certain amount of sense considering that we are in the midst of earnings season. With this being the case, it’s likely that there will continue to be a lot of choppiness overall.
Over the longer term, I do anticipate that the Nasdaq 100 will end up being a winner, but I recognize that we could get the occasional shock over the next couple of weeks that makes things a little bit difficult. The 200-day EMA sits right at the 24,000 level, so that’s something to watch. Underneath there, we have the 23,800 level offering support as well. Ultimately, I believe this is a situation where you continue to buy dips, but it will be noisy along the way as we try to kick off the longer-term trends.
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