- The Nasdaq 100 looks slightly positive during the trading session on Wednesday as we head toward the Federal Reserve meeting.
- At this point in time, it's likely that we will continue to see a lot of volatility, and I do expect at one point or another during the day, we may see a little bit of selling pressure.
Nonetheless, I like the idea of buying dips and I do believe that the Federal Reserve won't do anything to shock the market. Jerome Powell had the opportunity to stand tough against inflation but has been increasing his dovish tone over time. It is an election year in the US, and this is another external pressure on the Federal Reserve.
The Fed Will Protect Wall Street
After all, the Federal Reserve has shown time and time again that is just simply not willing to upset Wall Street. So, with that being said, I think that even if we do get some type of knee-jerk reaction, you have to look at it through the prism of perhaps finding value and taking advantage of maybe the 50-day EMA, the 18,000 level, or possibly even multiple levels underneath there. Longer term, I anticipate that this market goes much higher and will eventually find itself at the highs again. If we break above that level, then the 18,500 level would be your next target.
We have been in a 45 degree up trending channel for some time and that of course is a very healthy sign of bullish pressure because it's not overdone but it also is somewhat relentless. At this point, I believe that it's not until we break down below the 17,000 level that you even have to worry about the trend, and even then, it is probably just a short-term phenomenon. Looking for value continues to be the best way to go forward from what I can tell, and this means that you will be buying dips when you get the chance. The markets will continue to be bullish seemingly no matter what, so there is no way to fight that.
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