With all, I think it remains a “buy on the dips” type of situation that traders will be looking to take advantage of any time they can.
- The NASDAQ 100 rallied again during the trading session on Monday, as we continue to see the 13,750-level influence pricing.
- This was the previous resistance barrier, and now “market memory” comes into the picture to offer a bit of support in that area.
- The fact that we bounced does suggest that we are going higher over the longer term, so given enough time, it’s very likely that we will see a continuation of the uptrend.
- After all, the NASDAQ 100 is truly only comprised of about 7 stocks, as it is so heavily weighted toward some of the bigger names like Meta, Alphabet, Test like, etc.
With all, I think it remains a “buy on the dips” type of situation that traders will be looking to take advantage of any time they can. The 13,200-level underneath should continue to offer plenty of support, so I just don’t see the argument for shorting this market now, even though there are a lot of concerns in the economy. In a sense, Wall Street has been using technology stocks as a source of safety, which will undoubtedly end poorly, but in the meantime, it does seem to be working. If you are nimble, there are probably a few traits that you can take along the way. At this point, it is most certainly an upward momentum-based market that we are in, so it would not surprise me at all to see this market take on the 14,000 level above. The 14,000 level courses are a large, round, psychologically significant figure, but if we can break above there then it’s possible that we could go looking to the 14,500 level.
Traders Should be Cautious
Regardless, be cautious with your position size and of course, they should be positions that you are willing to throw away quite rapidly if you must. However, recently we have seen another shot higher, therefore it’s likely that we see the momentum traders coming back into the picture and chasing the latest returns. Quite frankly, the markets have been a bit of a mess in general, and the NASDAQ 100 has been one of the big winners therein lies part of the reason we see so much in the way of momentum because traders are doing everything, they can take advantage of this shot higher.
Potential signal: NAS 100 is doing everything possible to reach 14,000. Because of this, I am a short-term buyer. I also recognize that 13,750 level as a hard stop. On each 100 point drop, I am entering a long position, albeit in small quantities. If NAS 100 breaks above the 14,000 level, then we could see 14,500 be challenged.
Ready to trade our free trading signals? We’ve made a list of the top 10 forex brokers in the world for you to check out.