- The Nasdaq 100 has gapped higher to kick off the trading week and then shot to the upside.
- That being said the market looks as if it is going to try to get to the 18,500 level.
- It's probably worth noting that the day of course on Monday was the first day of the second quarter so that obviously comes into the picture as well as far as traders trying to get out the gate and start owning all the proper assets.
Ultimately, I think this is a scenario where traders will continue to look at this through the prism of buying on the dip and therefore, I think you have to be somewhat bullish regardless of what you see. Yes, it is a market that is a little overdone.
Yes, it probably could use a bit of a pullback, but at this point, I think we all know that pullbacks are quick and they're very shallow and I just don't see how that changes very easily in this environment where everybody is excited about the Federal Reserve cutting rates later this year. It has become a feedback loop. Furthermore, you have to keep in mind that the Nasdaq 100 isn't actually 100 stocks. It is a collection of about five or six that decide everything. This has become an ETF at best, as we continue to see a lot of passive investing drive everything.
You Must Remain Bullish
So, with that being the case, I have to remain bullish. I look at each and every pullback as a buying opportunity and currently I see the 17,775 level as your floor. If we can break above 18,500, this market could take off towards 19,000 and that would not surprise me at all. Furthermore, you have to keep in mind that the jobs number is at the end of the week. So, the later we get into this week, the more sluggish things may get, but overall, it's still very bullish. Ultimately, this is a situation where people are simply jumping into this market recklessly, but at this point in time we continue to see only one way to be in this market.
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