- The NASDAQ 100 initially tried to rally during the trading session on Wednesday but gave back against the show of lackluster returns.
- Ultimately, this is a market that he is waiting to see the next direction of the Federal Reserve, and although we have seen the 50-Day EMA hold as support, it’s probably worth noting that we have yet to really see any upward momentum either.
- We are sitting on top of the previous “W pattern”, so one would think that a certain amount of “market memory” comes into the picture.
Look at the chart, you can see just how noisy it’s been in this general vicinity, and the $12,000 level has certainly influenced pricing, as it has offered a significant amount of resistance. If we can break above the top of the shooting star from a couple of weeks ago which sits there, we could see the NASDAQ 100 go looking to the 200-Day EMA at the $12,500 level. If we were to break above the $12,500 level, then it’s possible that we could go higher, but I doubt that is going to be the case. With that being the case, I think that we are going to continue to see a lot of choppy trading action.
Markets Will be Very Sketchy
Furthermore, you need to keep in mind that Thursday is Thanksgiving in the United States, so the underlying index won’t be open. Some electronic trading will be available, and then of course CFD markets will be open at some brokerages. I would not expect much, but the one fear that you have is that in the thin liquidity, some type of announcement crosses the wire that has everybody freaking out. Beyond that, Friday is a very thin day, because most traders do not come back to work in America.
The markets will be very sketchy over the next couple of days, but it’s worth noting that the FOMC Meeting Minutes are coming out late on Friday, so it could cause a little bit of short-term volatility. At this point, we are still in a downtrend, but we have most certainly formed an interesting pattern that some people will look at through the prism of a bullish flag. Either way, you are more likely than not going to see choppy behavior in an erratic market.
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