- During the early hours of electronic trading in both the Asian and European sessions, the NASDAQ 100 was quite quiet.
- The market is a little stretched here, but it has been for some time.
- At this point, there is no real reason to think anything is going to change, as it has been a bit of a feedback loop for a while.
NASDAQ 100 Continues to Look Upwards
Although there is still strong upward pressure overall, the Nasdaq 100 has been relatively calm throughout the first portion of the Monday trading day. However, it appears that the Friday session may have seen some overstretching. That being said, given how much the market has been adored, Monday is probably going to see a lot more buy on the drop activity. Naturally, the Nasdaq 100 does not always consist of 100 stocks.
Because the index is not equally weighted, at this point it's essentially the fives, or maybe even the six, that drive everything. Having said that, you should keep an eye on all of the well-known names that everyone is swarming over and assess if the index will rise along with them.
The 20-day EMA is shown below, providing support close to the 17,800 mark. The 50-day EMA follows, providing support close to the 17,300 level. In any case, I don't believe we reach the 50-day EMA quickly. There will always be chances to get the contract for less during brief declines. You will outperform a lot of other traders who appear content to just chase the trade and trend that is currently overdone by simply hunting "for a better price."
And in my opinion, it won't be long before we start aiming for the 18,500 level in the upcoming sessions—possibly even the 19,000 level. However, bear in mind that Friday is jobs day, and traders' willingness to take on risk would naturally be impacted by this. Still, it is almost impossible to short the NASDAQ 100 at this moment because the market is obviously in a very evident rally. We are currently entering the realm of manias, which are nearly impossible to combat.
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