The NASDAQ 100 is strong in early trading on Wednesday, as traders are looking to take advantage of any value available.
NASDAQ 100
The NASDAQ 100 was very strong during the trading session on Wednesday as we are now fighting to break above the 25,000 level. The 25,000 level of course is a large round psychologically significant figure in an area that I think could see a lot of noise in that general vicinity.
The 50-day EMA above is going to continue to be a major resistance barrier, but it’s likely that we could see this market try to take it out and even go above there. I do believe longer term the NASDAQ 100 is still going to be very bullish and I like owning the NASDAQ 100, but I also recognize that there’s been a lot of damage done to the whole artificial intelligence narrative.
POTENTIAL FOR A LONG-TERM BREAKOUT
As long as that’s the case, it is going to be a little bit cautious and of course we are going through earnings season, but there are geopolitics afoot and concerns about whether or not the Federal Reserve will cut rates quick enough for everybody. I don’t necessarily think this is a problem at this point and I do think anytime we see a little bit of a dip you have to be looking at the NASDAQ 100 as a potential opportunity.
Given enough time, I believe this is a market that will find plenty of buyers and of course not only rally from here, but I think it breaks out to the upside. If and when it does, you have a real shot at a huge move, maybe to 28,000, but that’s over the longer term.
We’ve been sideways for 2.5 months and although it feels like forever, the reality is it makes sense to have digested all of those massive gains from the previous year. Again, I don’t have any interest in shorting this market I think eventually it will give us a nice buying opportunity.
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