- The NASDAQ 100 rallied a bit during the trading session on Friday as the markets continued to rock back and forth.
- Keep in mind, we're heading into the weekend, so things are a little bit volatile.
- We also have seen the jobs number come out hotter than anticipated. So, it initially was a pretty strong move. We did give back some.
Perhaps people are starting to think that maybe the Federal Reserve cannot cut rates as rapidly as they had desired. Who knows? But it is worth understanding that Wall Street essentially looks for liquidity. It's got nothing to do with how the economy is going as far as they are concerned. Short-term pullback should continue to attract buyers, and I do think that the 50-day EMA underneath should continue to offer a bit of a floor.
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The 20,000 Level Continues to Matter
Ultimately, I do think that we are starting to pay close attention to the 20,000 level, which granted we have sliced through it a couple of times, but it seems to be a bit of a magnet for price. If we can stay above there on a daily close, that would probably be a sign that we are ready to rally even further. But like I said, short-term pullbacks do continue to be buying opportunities and the 50-day EMA I think is an excellent place to look for value.
Above there we have the 19,500 level that also comes into the picture. So ultimately this is a situation where the NASDAQ 100 probably continues to grind higher. I don't think we're going to get an easy shot just simply due to the fact that there are so many questions about geopolitics, which is something that's completely out of the control of Fed or Wall Street players.
So the market is positive, but I also recognize position sizing will be crucial in order to take advantage of the momentum. Ultimately, this is a market that will attract inflows, so this is a situation where it is difficult to get short anytime soon.
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