The NASDAQ 100 initially rallied during the trading session on Wednesday, as we are waiting for the Federal Reserve announcement. That being said, this is a market that I think regardless of what happens next, the have a situation where buyers will come back in and try to pick this up.
With this being the case, I think the 50-Day EMA is something that you need to pay close attention to, especially nearly 15,500 level. That of course assumes that we can get anywhere near that area. After all, this is a mark that has been extraordinarily bullish, and still has plenty of noise out there that could affect it in a positive light.
Santa Claus Rally
After all, there is the “Santa Claus Rally” that Wall Street will obviously have a lot to say about its potential move higher. Short-term pullbacks opens up the possibility of a move to the upside, with the 16,000 level underneath offering short-term support. Underneath that, the 15,750 level also offers support as well. In general, this is a situation where I think that people will continue to try to chase performance, but we have got a little bit overstretched at this point.
All things being equal, I do think that we go higher between now and the end of the year, but the real question will be whether or not we need to pull back in order to find support. I think it’s very likely that we will eventually have that happen, especially as the Federal Reserve statement comes on during the day on Wednesday, and it will certainly cause quite a bit of noise.
In general, this is a situation that I think people will continue to pick this up, if for no other reason than to show their clients that they are going to own all of the proper stocks, therefore I think it is a situation where you have that type of action. Furthermore, you also have to keep in mind that the “Magnificent 7” continues to drive this pair, so with that being said, the market is likely to continue to see a lot of volatility, but I do think that the buyers will continue to come in and pick this up between now and New Year’s Day.
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