The NASDAQ 100 rose again in the early hours of Wednesday, as we continue to see a lot of headlines moving the markets in general.
NASDAQ 100
The NASDAQ 100 has rallied again during the trading session here on Wednesday as we continue to flirt with the idea of peace breaking out in the Middle East and of course a major risk appetite injection into the markets. You can see how things have behaved since Trump and others had started talking about ceasefire arrangements and talks in Pakistan and it looks like we may very well see more of those same talks in the relative near future.
This has driven interest rates down in the United States and of course has had a positive effect on technology stocks. The NASDAQ 100 is very sensitive to interest rates and therefore this is not a huge surprise.
However, I would be hesitant to chase the market all the way up here. After all, it's gone straight up in the air for about 2.5 weeks. I think it's probably asking a lot for the market to just simply slice through the highs at 26,275.
Market Sentiment and Realistic Outlook
So while I am bullish, I also am realistic. I understand that a move like that could happen; the reality is though we've expended a lot of energy to get here and it might just be a simple question of who's left to start buying.
If we were to break above the $26,275 level, I'd probably be buying the pullback. If we don't, I'm buying the pullback also. In that environment, I'm looking to buy somewhere near 25,500 if I get that opportunity. We'll just have to wait and see.
Either way, the one thing that I don't want to do is chase a market that has run away the way that the NASDAQ 100 has. We're getting awfully close to a potential ceiling. We'll see, but most of the time when you expend this much energy getting there, it will hold.