- During the daily analysis I do of the NASDAQ 100, the first thing that I notice is that we are sitting at the crucial 50 Day EMA.
- The 50 Day EMA has served as a bit of an uptrend line, going back several months.
- Because of this, one would have to assume that there will be some hesitation to try to challenge it to drastically.
- Nonetheless, it is worth noting that we had recently formed the something akin to a “double top”, and this could have a certain influence on people.
All things being equal, we are most certainly in an uptrend still, and I think it comes down to whether or not traders find a certain amount of value on dips, or if they are going to continue to be a bit flustered by the idea of tariffs and uncertainty when it comes to the global market overall. That being said, the market turns around and breaks above the top of the candlestick for the trading session on Monday, then it opens up the possibility of the move to the 22,000 level above.
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Obviously, the technical analysis for this market is still rather bullish, and I think that there are plenty of buyers out there still, despite the fact that we’ve seen a couple of negative days in a row. Ultimately, I do think that value hunters come back in and try to take advantage of all of their favorite stocks given enough time.
It’s also worth noting that despite the fact that we ended up forming a little bit of a “double top”, that the most recent high was higher than the one before it. Even if we were to break down below the 21,000 level, it opens up the possibility of a move down to the 20,800 level, followed by the 200 Day EMA which sits just above the 20,000 level.
In other words, I have no interest in shorting this market and I think there’s a real possibility that we eventually take off to the upside.
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