- The NASDAQ 100 rallied during the early hours on Thursday as we continue to see bullish behavior.
- This was kicked off by the Nvidia earnings call overnight, which continues to show a lot of strength in the artificial intelligence world.
- This being the case, it looks like we are just simply recovering from a short-term pullback that almost certainly will see the NASDAQ 100 continue the same behavior that it has seen for quite some time.
Underneath, we have the 20-Day EMA followed by the 50-Day EMA indicators, and then eventually the 16,950 level if we do in fact pull back that far. I think at this point in time it’s obvious that the market remains bullish, and the 18,000 level above will be the target given enough time. Anything above there then opens up more buying, as the NASDAQ 100 continues to power ahead.
It’s an ETF, not an index
The NASDAQ 100 is no longer an index. It has become an ETF as it’s only a handful of stocks that make up most of the moving. After all, it is not an equal weighted index, so therefore companies such as Microsoft, Tesla, Nvidia, etc. all can move these indices rather quickly. In fact, if you compare the NASDAQ 100 to an equal weighted index, it’s a completely different world. That being said, this is a fact of “passive investing” that a lot of people often overlook, the fact that everybody owns the same assets.
With that being said, it’s very difficult to see this market breakdown without “shooting the generals.” This is an expression that Wall Street uses when traders start to sell off all of the top stocks around the world. Until that is the case, this is a market that might have a couple bad days here and there, but ultimately has no real shot at falling apart. It’s not until we break down below the 16,950 level that I would be concerned about the NASDAQ 100, and even then, I think it would just be a deeper correction that a lot of value hunters would be willing to get involved in. In other words, this remains a “buy on the dips” market.
Ready to trade our daily Forex signals? Here’s a list of some of the best Forex trading platforms to check out.