- The Nasdaq 100 was somewhat soft during the early hours on Wednesday, but I think a lot of what you are seeing right now is the market trying to get ahead of the jobs report.
- We don't necessarily want to see a lot of noise out there.
In a scenario where traders are trying to sort out where the interest rate situation in America is going. Jobs, of course, would be a major influence on that. And as a result, I think you have to look at it through the prism of a market that remains more or less buy on the dip but might be a bit cautious for the next couple of days.
Support Below
Underneath the 17,775 level is support, just as the 50 day EMA sitting right around the same area is. I do not have any interest in shorting this market, and I believe that it is probably only a matter of time before any dip gets bought into. Over the longer term. I don't see the Nasdaq 100 changing trends anytime soon, but people are starting to become a bit concerned about interest rates again and that is a major factor here.
With that being said, expect a choppy couple of days followed by a lot of volatility late on Friday. If we can break above the highs, then we will go looking towards the 18,500 level, followed by 18,700. That being said, it’s going to take quite a bit of effort to get to that level, due to the fact that we have seen so much of an extended rally. This is a market that is having everybody put its money into just one or 2 things, which is not a good or healthy sign. However, it’s obvious that the momentum trading has overtaken the market yet again, and therefore it’s likely that we could continue to see upward momentum, followed by a crash as we continue to do the “bust and boom” cycle that Wall Street is notorious for.
Ready to trade the NASDAQ? We’ve made a list of the best online CFD trading brokers worth trading with.