- The market is currently, in my opinion, essentially waiting for the Producers Price Index numbers to come out on Thursday, which is our next inflationary economic signal.
- The NASDAQ 100 is still looking bullish going into the early hours of Wednesday.
NASDAQ 100 continues to see a lot of volatility
The market's current recovery following the CPI sell-off during the previous session is undoubtedly a very positive indication, but it doesn't necessarily mean that we have a lot of momentum behind us—at least not until we get back through the back end of the PPI numbers, which are released on Thursday. The NASDAQ 100 did very little during the early session on Wednesday. After that is released, both of the major inflationary gauges for the week will be available, allowing traders to shift their attention to possibly longer-term issues. Having said that, I will continue to treat the NASDAQ 100 as though it were a buy on the dip opportunity, as I believe the market will continue to do. Given the 20-day EMA, I think the 18,000 level represents a significant floor in the near term.
Since we are generally hanging out in a channel that is essentially 45 degrees, there is a perfect opportunity to buy in this channel. A move to the 18,500 level, or possibly even to the 19,000 level, is possible if the market breaks higher. Of course, a small number of stocks dominate the NASDAQ 100, but this has been the case for some time, and I don't see that changing.
Having said that, I believe you are still searching for value. In the end, this is a situation where you just barely make ends meet whenever you get the chance because the upward momentum is so strong and there isn't any significant disappointment. Once more, be sure to keep an eye on all of Wall Street's trendy stocks because they are creating yet another bubble to boost numbers. This is a situation that seems to repeat itself over and over again, as the same play has been so profitable for the largest firms out there.
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