The NASDAQ 100 was all over the place during the trading session on Friday, as the quadruple witching continues to cause chaos in stock markets overall. We had broken above the 10,000 level quite nicely but did not break out to a fresh, new high. If we could break above the previous, then we simply will continue to go to the upside. That being said, the candlestick is a bit of a shooting star that was preceded by a hammer so again, I do not read too much into it and suspect that we probably will continue to go sideways around the 10,000 level.
Even if we do break down from here, I think there is a bit of a “floor” near the 9500 level, which is supported as we have seen recently. I think at this point we will probably continue to bounce around between 9500 and the 10,000 level in the intermediate term, with the 50 day EMA reaching towards the 9500 level and offering a bit more support to that level. Because of this, the market is likely to continue to find plenty of interest down at that level.
When you look at the chart, you can see that there is a bit of a channel for some time, and now I think that when we pull back from here there will be people looking to get involved in that. The Federal Reserve continues to do as much as they can to lift the stock market for Wall Street and line the pockets of bankers. Clearly, we are well beyond the idea of anything resembling the economy and you should keep in mind that the NASDAQ 100 is highly weighted to the top five stocks, so remember it is all about Tesla, Netflix, Google, Microsoft, and Amazon. With that being the case, as long as those stocks are rising, this index will right along with it as they are essentially 35% of the index or so.
If we do break out from here, I think that we are eventually going to go looking towards the 11,000 level, and then eventually the 12,000 level after that. Ultimately, if we were to turn around and break down below the 50 day EMA I think that the 9000 level will then offer as a potential floor.