- At the end of the day, this is a market that's been very positive until recently, and now we're just kind of consolidating.
- The market continues to look like one that is trying to find a reason to break out.
- The NASDAQ 100 rallied a bit in the early part of the Tuesday session as we continue to grind to the upside.
It looks like we are trying to get to the 26,000 level before it's all said and done, and some of the positivity, I think, is probably led by the idea that the Federal Reserve may have to cut rates in one of the next couple of interest rate meetings.
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That being said, we also have a more resilient than anticipated US economy, and of course, the tech sector is getting a bit of a boost through artificial intelligence still.
Technical Patterns and Support
Ultimately, I do think the 26,000 level is a major area of contention, and if we can break above there, then we can really start to take off to the upside, continuing the massive bullish trend that we have been in for months.
Short-term pullbacks should continue to see plenty of support, especially with the 50-day EMA offering support, and any pullback from there, I think, then opens up a move down to 25,000, which I think is going to act as a short-term floor. Keep in mind that the Friday session features the jobs report coming out of the United States, so that obviously will kick in quite a bit of volatility.
We aren't there yet, but you could make an argument that we are in the midst of trying to form an ascending triangle, which, of course, is bullish. Whether or not that kicks off remains to be seen.
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