- The Nasdaq 100 pulled back slightly during the early hours on Thursday, but at this point in time, it looks like a market that's just trying to digest some of the massive gains that we had seen so far.
- After all, this is a market that had three massive days in a row over the last week or so, and therefore traders are probably a little bit exhausted.
Furthermore, there isn't a whole lot out there to move the markets right now, and we are also getting somewhat close to the all-time highs. So, a little bit of hesitation makes a lot of sense as far as the technical analysis is concerned. It's worth noting that the 17,850 level is just below, and it is an area that a lot of people have paid close attention to.
50-Day EMA
With that, and the fact that the 50 day EMA sits right there, I think it all ties in together quite nicely that we may potentially see buyers on this short term pullback. From here, the 18,500 level looks to be the target. And that, of course, will be a bit of a barrier that people will have to overcome. I think at this point, we are starting to try at least to build up the necessary momentum, and that may take some time.
Even if we were to break down below the 50 day EMA. I have no interest in selling the Nasdaq 100 because quite frankly, it is not a market that you can short. The 17,000 level underneath is probably the hard floor in the market at the moment, but I would be rather surprised to see this market get anywhere near there.
With that being said, I remain bullish, but I look for short term pullbacks in order to take advantage of it. That’s been the pattern for quite some time, and I don’t see how the changes anytime soon. After all, Wall Street is always looking for some type of narrative to push stocks higher, and the NASDAQ 100 is one of its favorite vehicles to do so in.
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