- During my analysis of the NASDAQ 100 on Tuesday, the first thing I noticed is that we are bouncing around an area that has been important more than once.
- The 19,500 level has been both support and resistance.
- Now that we are in this region, it suggests that we have a big decision to make.
Ultimately, this is a market that if we can bounce from here, it's likely that we could go look into the 20,000 level. The 20,000 level, of course, is an area that a lot of people will pay attention to as it is a large round psychologically significant figure. And therefore, it's good for headlines. If we break the 20,000 level, then I don't know that there's a whole lot to keep us from going to the highs again, a pullback from here more likely than not reaches towards the 50 day EMA, which sits right around the 19,300 level.
Top Forex Brokers
Interest rates and Nonsense
Keep in mind that the NASDAQ 100 is highly sensitive to interest rates and people are banking on the Federal Reserve collapsing and cutting rates quite rapidly. The question of course is, can they do it without increasing inflation? Because inflation in America is still the biggest issue. At this point, I have been watching Wall Street try to convince itself that inflation is something that the plebs can deal with, and they can gamble with riskier companies. That being said, in the real world, its much more tough than that.
It will be a very nuanced fight, but right now it looks like traders are trying to pick up the NASDAQ 100 and I would be much more comfortable getting long in this market than trying to sell it because quite frankly, there are far too many things out there that tend to influence this market higher. It's just the natural sort of things that we see where people just dollar cost average in. I think that's kind of the feeling here.
Ready to trade the daily stock analysis? Here are the best CFD brokers to choose from.