The Nasdaq 100 rallied on Wednesday so show signs of life going forward. At this point, the markets are still in a range, but it looks as if we are trying to reach the top of the range.
NASDAQ 100
The Nasdaq 100 did fairly well during the trading session on Wednesday as we have now cleared the 25,000 level. Now we are starting to focus on the 25,350 level, an area that is a potential resistance barrier. If we can clear that level, then we could see this market go looking to the 26,275 level.
Ultimately this is a market that I think short-term pullbacks will continue to attract a certain amount of attention, but I also recognize that with Nvidia earnings coming and several other big companies, we do have a certain amount of volatility just waiting to happen.
Short-Term Pullbacks as Buying Opportunities
Nonetheless, this looks like a market that wants to go higher over the longer term, so I have no interest in shorting it, and I look at short-term pullbacks as potential buying opportunities. The 24,400 level would be support right along with the 200-day EMA and the 23,800 level.
We have been consolidating for a while after going much higher, and with this I think a certain amount of froth has to be worked off. If we do continue to see a certain amount of buying pressure in this market, I don't think there is a situation where you can get overly aggressive to the downside.
The fact that we have been sideways for almost 3 months now also tells me that it's probably only a matter of time before the momentum picks up. As things stand right now, I remain bullish and patient. It will take some time, but I think we are going to finally break out and go much higher eventually.