- The NASDAQ 100 Index has found quite a bit of buying pressure during the trading session on Thursday.
- We are now looking at the 13,750 level as an area of potential importance.
- We did dip below there on Wednesday, but then turned around to show signs of strength.
Expect Choppiness Ahead
Ultimately, this is a market that will continue to be noisy, but it looks like traders are running into some of the main technology stocks, which of course make up the bulk of the movement in the NASDAQ 100. Remember, you could call this the “NASDAQ 7” and be perfectly correct. As traders continue to jump into stocks like Nvidia, Microsoft, Meta, Alphabet, Tesla, and the like, it will push this market much higher. On the other hand, the hammer underneath could be a significant support level. If we were to break down below the bottom of the candle on Wednesday, then you could see a little bit deeper pullback. In that move, the 50-Day EMA sits as likely support, especially near the 13,200 level.
On the upside, if we were to break above the 14,000 level, then it is likely that we could go looking to the 15,000 level, which is a large, round, psychologically significant figure and it might be the target that a lot of traders are looking to get to. However, I don’t think it won’t be necessarily easy to get there, although it’s probably worth noting that the NASDAQ 100 has been one of the better performers as far as stock indices are concerned, and most certainly is going to be the case in the United States itself.
That being said, there are a lot of concerns around the world right now as far as global growth, and that of course is going to be the same in the United States. It does look like we are heading into recession, so we have to ask whether or not there is going to be any type of panic move that could melt this market down. I do think that we are probably more likely to go higher overall, and at this point it’s very likely that it’s a matter of inflating the bubble, and making sure you are not left holding the bag. This is a common game in the US stock indices and therefore caution is the better part of valor.
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