- The NASDAQ 100 has been all over the place during the month of April, which is not a huge surprise considering that there are a lot of uncertainties around the world.
- After all, the NASDAQ 100 is an index that is highly sensitive to risk appetite, as it is some of the higher growth companies.
- Furthermore, the month of April has seen earning season kickoff at the end of it, so that obviously has a major influence on what happens in the NASDAQ 100 as well.
The 17,000 level has proven itself to be important in this market, and therefore I think you need to look at it through the prism of a “floor in the market” that we are dealing with. If the market were to break down below the 17,000 level, then it’s possible that we could drop another 1000 points down to the 16,000 level. While I don’t necessarily have that as a target going forward, I do recognize that it is something important to keep in the back of your mind.
At this point in time, I believe that the 18,500 level is an area that traders will continue to look to as a potential target, as it was significant resistance previously. With that being the case, the market is likely to continue to see a lot of volatility, but I think every time we pull back, it’s very likely that buyers will come in and try to pick up a little bit of value.
One thing is for sure, it seems like the Wall Street traders out there continue to find reasons to buy stocks regardless. That being said, I think every dip will more likely than not capture a certain amount of attention, and therefore I think given enough time we could really start to see this market take off. Over the longer term, I think you continue to see a lot of people jumping into this market, but there may be a lot of pain between now and whenever we find momentum. Longer-term, it would not surprise me at all to see the NASDAQ 100 go looking to the 20,000 level, but it may not happen during the month of May as we are probably going to spend most of her time digesting some of the massive gains that we had seen previously.
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