- The NASDAQ 100 rallied rather significantly during trading on Tuesday, as Wall Street ignores the Federal Reserve.
- After all, the Fed is trying to convince people that they’re going to keep money tight, and of course the fact that we have had a lot of negativity out there when it comes to the US economy, which of course Wall Street typically will celebrate as well.
- This is because they are waiting for that cheap and easy money that they’ve had for ages.
The NASDAQ 100 is driven by about 5 or 6 stocks, and they are all rising during the day, so that makes sense that we are seeing the bullish pressure here. As I record this video, we are above the 15,250 level, and it looks like we could go much higher. If we do, then we may have some type of melt up into the end of the year, but it’s also likely that we will see extreme amounts of volatility. Short-term pullbacks to offer buying opportunities down to the roughly 15,200 level, so I suspect short-term traders will continue to jump into this market. That being said, there are a lot of sharks in the water right now, so you need to be very cautious about how much money you allocate.
Noise Ahead
The NASDAQ 100 will continue to be very noisy in general, and I just don’t see how that changes anytime soon. Because of this, the market is likely to see massive swings like we have seen over the last week or so, and the fact that we are ignoring the fact that the volatilities out there tells me that we could get a bit of a panic run to the upside. We are also breaking out of the descending channel, which of course is a very bullish sign as well.
Underneath, we have the 50-Day EMA coming into the picture, and that should offer a significant amount of support as well. If we were to break down below there, then the market could drop down to the 14,000 level, which is basically the bottom of the overall descending channel. I don’t think that’s likely to happen anytime soon, but at the same time I didn’t think we were going to go straight up in the air for the last 2 weeks on hopes that the US economy tips into recession.
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