The NASDAQ 100 has been very strong over the last several weeks, after consolidating just above the 5300 level. As we are exiting the earnings season, I feel that the market feels comfortable with what we have seen, and that the NASDAQ 100 index should continue to lead the way for US stock markets. I believe that pullbacks anytime during the month should end up being buying opportunities, as the NASDAQ 100 has lead the way for other indices to rally. I believe that the 5300 level will be considered the “floor” of the market for the next month.
Buying dips
I think that short-term traders will probably run this market as we have seen an impulsive moved to the upside, so therefore it might be a little bit difficult to trade from a longer-term perspective. I think that short-term “buying dips” will be the way going forward, and that we should see plenty of opportunity to trade this market. Not only do I think that the 5300 level will be supportive, but I also think that there will be a certain amount of support near the 5450 handle which of course was just broken by the latest weekly impulsive candle.
Technology companies have continued to be favored, and the reports of some of the largest companies of this sector report very strong earnings. Companies such as Alphabet continue to show quite a bit of bullish pressure and strong earnings. I have no interest in shorting, and believe that the target by the end of the month will probably be somewhere closer to the 5700 level. Ultimately, it might be a bit choppy but I still believe that any time you see this market falling, you should start thinking that it’s offering the index “on sale”, and offering significant value.