The NASDAQ 100 initially pulled back on Monday, but then turned around to find buyers yet again. It looks as if the NASDAQ 100 is going to threaten the 11,500 level, but at this point it’s worth noting that the market is running on hope more than anything else. The market is likely to continue to see a lot of volatility, but at this point it’s worth noting that the 50-Day EMA is sitting just above and should offer a significant amount of resistance. Ultimately, this is a market that I think as soon as you see exhaustion, there will probably be sellers willing to jump back into the market.
If we do break down from here, the 11,000 level does make a reasonable target, and you should keep in mind that we are in the midst of earnings season, so there could be the occasional headline the cross is the liar to cause a bit of volatility as well. This is a situation where the market is eventually going to run out of momentum, then you will be looking for shorting opportunities. After all, the market is likely to continue to see a lot of the same problems going forward, so therefore I think that this relief rally, and I do believe that it’s really a, should offer a nice opportunity given enough time. The higher the NASDAQ 100 goes, the more I’m interested in shorting it.
The market breaking below the 11,000 level could open up the possibility of a move down to the 10,500 level, where we had bounced from previously. Keep in mind that there’s just a handful of companies moving the NASDAQ 100, so you need to pay close attention to Tesla, Alphabet, Microsoft, etc. In other words, this is not an equally weighted index, so it only takes a handful of negative companies to really drive this thing lower.
- I will more likely than not be on the sidelines in this market and waiting for a shorting opportunity.
- I have no interest in trying to trade against the overall trend, and can be patient enough to wait for a swing that runs out of momentum to gain higher profit.
- Right now, it appears that Wall Street is starting to talk itself into the next “Fed pivot” narrative.
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