The NASDAQ 100 initially fell a bit during the trading session on Thursday but found buyers underneath you continue to at least stabilize. At this point, the market looks as if it is going to take a little bit of a breather in order to build up the necessary momentum to reach the crucial 15,250 level ball, which is an area where we had seen resistance before.
That being said, it will be interesting to see how Friday plays out due to the fact that it is the end of the month, and therefore a lot of people will be looking to markup their positions. This tends to favor upward pressure, especially after he is as it is everything to the Wall Street firms. This doesn’t mean that the market has to go higher during, just that historically speaking that tends to happen.
On some type of pullback, the 14,600 level is an area of support, that has been important previously. Because of this, I think it’s probably only a matter of time before market participants would be willing to jump into the market near that area. That will be especially true considering that the 50-Day EMA is racing toward that area, but ultimately this is a market that I think is looking for some type of directionality. Jerome Powell has reiterated his desire to keep interest rates tight during the Portuguese central banker meeting that has happened during the week, as do most other major central banks. Because of this, I think you will continue to see a lot of volatility in the markets, but at the end of the day, it appears that the buyers are still very much in control.
Looking to Buy the Dips
- While I do not necessarily like the economic backdrop, the reality is that there are only about 7 stocks in the NASDAQ 100 that truly matter.
- In this environment, everybody runs into the same companies such as Apple, Tesla, etc.
- As long as that dynamic continues to be a major driver, I think you have to look at this as a “buy on the dip” situation.
Potential Signal: going forward, I believe that the NASDAQ 100 will do everything it can to reach the 15,250 level, an area that we recently pulled back from. Whether or not we can break above their remains is to be seen, but I still like buying dips here, with the stop loss near the 14,800 level.
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