NASDAQ 100 Forecast Launches After CPI Misses

• The Nasdaq 100 exploded to the upside during the trading session on Wednesday, mainly due to its oversold nature.
• Then, on top of that, we got the consumer price index numbers coming out at 0.23% month over month instead of the expected 0.3%.

So, everybody is now off to the races. They believe that the Federal Reserve is going to be a bit more hesitant about remaining tight for so long. And Wall Street is celebrating. Now, I don't think that changes much, but I think it does suggest that perhaps things aren't getting worse. And that is really the crux of the conversation here, I believe. Technical analysts will look at this and suggest that maybe, just maybe, there's a bit of a descending wedge here that if we were to break out of it could free the market to go looking towards the recent all-time highs. And I don't know that I would argue with that. I don't necessarily like wedges, but it tells me the same thing that my other analysis tells me. And that is that we are very much in an uptrend and the size of the candlestick does suggest that we probably have quite a bit further to go.

Buying on Dips

With all that in mind, I like the idea of buying the NASDAQ 100 on short-term dips as it offers a little bit of value that you can exploit. The market clearing the 21,000 level as wildly as it has during the session is, of course, a good sign. Also, I think that a lot of the fear and noise that we've seen over the last couple of weeks may have just kicked off another opportunity for traders. That being said, I don't necessarily want to get too aggressive here, but I think ultimately, you have to look at this as a market that will eventually go higher, but it is just a bit sluggish at the moment as we try to sort out what the Trump administration might do when they come into the picture. But if history is any sign, they are obviously going to be very friendly to business. So overall, I remain bullish.

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