- The Nasdaq 100 fell a bit during the early trading hours on Tuesday as we are now below the 20 day EMA.
- That being said I think most of this is probably just something along the lines of profit taking as market participants have been so all over the place with the idea of what the Fed may or may not do.
The traders on Wall Street have been taught to pay close attention to the Federal Reserve monetary policy more than anything else, so at this point in time there is no reason to think that it's going to change.
With that being the case, you have to be very cautious, but I also recognize that we're in an uptrend, and that's not going to change anytime soon, so there is that I suppose. With that being the case, market participants continue to look at short-term pullbacks as potential buying opportunities. And for what it is worth, Canadian CPI came out much lower than anticipated earlier in the session.
So, we'll have to wait and see whether or not they try to extrapolate that into the idea of what may or may not be going on in the United States. Underneath we have plenty of support, especially near the 16,950 level and the 50 day EMA.
So, I have no qualms whatsoever about trying to buy a dip that drops down to there. After all this is a market that continues to see buyers regardless of what happens and the fact that Nvidia has an earnings call on Wednesday might be part of what people are concerned about.
If we turn around and take out the top of the candlestick for the trading session on Tuesday that's a bullish sign as well and it is more likely than not, I could send this market looking back to the $18,000 level.
Either way I am not selling the Nasdaq 100. I'm either on the sidelines or I'm buying dips that show promise of a bounce. I do think it's probably only a matter of time before buyers take advantage of “cheap contracts” in this market, as bad spin the behavior for some time.
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