- The NASDAQ 100 displayed a slight bullish trend during the early hours of Friday's trading session, with traders turning their attention to the upcoming three-day weekend and the expiration of over $2 trillion in options.
- This will of course cause it to be a bit odd at times, but in the end – we are still very much in an uptrend, and that isn’t changing anytime soon from what I see.
Looking ahead, considerations should be made for President's Day on Monday in the United States, which may influence market dynamics, although you may be able to get involved in CFD markets. Additionally, the expiration of options presents potential for market volatility, urging caution for short-term traders.
Caution Makes Sense. Let’s See if it Happens.
Amidst these factors, the market may warrant a cautious approach, especially for those with short-term trading strategies. However, any dips in the market offer opportunities for strategic buying, providing entry points at potentially lower prices. This has been the best way to trade this market, but at this point, it is only the occasional shallow pullback that we have been able to take advantage of.
Key support levels include the 20-day Exponential Moving Average and the 50-day EMA, situated around the crucial 17,000 level. Notably, the previous resistance barrier at 16,950 is expected to act as support, driven by market memory. This should continue to be an area that a lot of traders will be cognizant of and should continue to be one that attracts inflows.
Despite occasional dips, the NASDAQ 100 appears resilient, with buyers consistently stepping in to maintain upward momentum. The anticipation of Federal Reserve interest rate cuts in 2024 continues to underpin market confidence, contributing to the overall bullish sentiment.
While the path to higher levels may not be without challenges, the prevailing market dynamics suggest a gradual ascent towards the 18,000 level, with the ultimate goal of reaching the psychological milestone of 20,000. This trajectory may require time to materialize, but buyer dominance remains evident, indicating a sustained bullish outlook for the NASDAQ 100 in the foreseeable future. This market simply refuses to pay attention to bad news for very long, and therefore we are in the midst of some kind of mania. It won’t end well, but it doesn’t look likely to end soon.
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