- The NASDAQ 100 initially tried to rally during the trading session here on Friday, and we did gain a little bit, but it looks like we’re probably just going to drift into the weekend.
- That's not a huge surprise because, quite frankly, Friday is typically a session where a lot of people will be very cautious unless there's something to move the markets. Keep in mind that the US government is shut down at the moment, so we don't have economic numbers coming out to influence what traders might be doing. With all of that being said, we are above the 25,000 level. And I think that in and of itself is probably going to be some type of market moving factor by itself because traders love these big figures and will be reading about it in all the news over the next few sessions.
Buying on Dips
I think it shows that we are going to continue to see buyers on short term dips and eventually try to break higher than we are right now. Even if we do pull back from here, the 24,500 level, I think offers quite a bit of support. And ultimately, I think we will continue to see a lot of buying pressure. But as we have reached a large, round, psychologically significant figure, it's not a huge surprise if we end up going sideways for a little bit and just simply digesting some of the gains. Over the longer term, I think we've got a situation where buyers will eventually push higher, but maybe we need to take a little bit of a breather. It's been a slow, relentless, almost zombie crawl to the upside for months. And really, there's nothing on this chart that even remotely tells me we need to start selling.
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