The NASDAQ 100 has been relatively quiet during the trading session, but it is worth noting that towards the end of the day the buyers came in and picked it up. That being the case, the market is likely to see an attempt to get to the 14,000 level. Ultimately, this is a market that I think continues to see plenty of buyers on dips mainly due to the fact that some of the biggest movers of the NASDAQ 100 are the “household technology names” that a lot of people on Wall Street jump into every time they dip. After all, the market is likely to continue to see traders pushed the same narrative going forward in the “work from home” scenario, and now a lot of those companies people are assuming that they will be highly sought after and only continue to grow now that people have learned that they can do things like work from home using Zoom, Microsoft, and other online services.
To the downside, the market is likely to see plenty of support at various places, not the least of which of course is the uptrend line that I have marked on the chart. That is followed very quickly by the 13,000 level and the 50 day EMA which are all basically in the same region. In other words, there should be plenty of buyers waiting to pick up the NASDAQ 100 anytime it offers cheaper pricing. Beyond that, I also think that the 13,500 level could probably come into play as well. I do believe that is an area that will probably attract a certain amount of attention just due to the fact that on shorter-term charts it has been interesting for a lot of traders.
If we were to break down below the uptrend line and the 50 day EMA, I would simply step to the side and wait to see whether or not we are going to respect the 200 day EMA underneath, which would probably be approaching the $12,000 level at that point. Nonetheless, I believe that the market is eventually going to break out and go looking towards the $15,000 level, but we have some work to do before we get there. At the very least, I would anticipate a bit of sideways action to work off some of the recent froth.
