The NASDAQ 100 rallied a bit during the trading session on Wednesday as we continue to see yields in America drop. That typically will have traders looking for growth stocks, which top the NASDAQ 100 in the form of Facebook, Alphabet, and others. That being the case, the market is likely to continue to see an upward momentum that should last for quite some time, especially as the uptrend line sits just below it.
The uptrend line is something worth paying attention to If we were to break down below that level, then it is likely that the market would go looking towards the 50-day EMA underneath at the 14,500 level. That being the case, I think this is a buy-on-the-dips situation or a simple buy-on-a-breakout-to-the-upside situation.
Keep in mind that the biggest driver of the NASDAQ 100 is a handful of stocks that Wall Street loves, and it is only a matter of time before they rally. Cheap money continues to flow into the marketplace, so the whole “there is no alternative” situation continues to be the main driver, and as we head towards the jobs figure on Friday, it is very likely that we will continue to see upward pressure.
Breaking above the recent all-time high opens up the move towards 15,500, which is a round figure that will attract a certain amount of attention, but I do think that we will go as high as 16,000. Keep in mind that there is the so-called “Powell put” out there, as the traders on Wall Street continue to see reasons to buy stocks regardless of what happens. As long as there are plenty of liquidity measures being taken, it makes sense that stocks will continue to go higher. I have no interest in shorting this market, but if we were to turn around and break down below the 14,000 level, then I might be a buyer of puts, but I would not be a seller of this market as it is simply far too strong to try to short, especially as US indices are so highly manipulated by the central bank.
