The Nasdaq 100 rallied again on Tuesday, as we continue to see a lot of buyers jumping into the market to take advantage of the overall uptrend.
Nasdaq 100
The Nasdaq 100 rallied again during the trading session on Tuesday, breaking up above the crucial 30,000 level. This is a market that is clearly compressing, and the question now is, do we have enough follow-through to continue to the upside?
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What I find interesting is that during the session on Tuesday, we saw interest rates rise, yet stock markets continue to climb. In this environment, it goes a little against typical conventional wisdom, so this tells me that there are plenty of buyers out there willing to get involved. I've got no interest in shorting this market regardless. Quite frankly, it's not an equal-weighted index, so why bother? This is not a fair fight.
Market Outlook and Technical Analysis
It only takes a handful of stocks to really get this thing flying, so therefore, I believe that we will attempt to continue to the upside. Short-term pullbacks offer value. The 50-day EMA offers support. Given enough time, we could go looking to the 31,000 level, which seems to be a barrier at the moment.
I don't really see anything particular about that level that makes it important, other than the fact that we had gone straight up in the air at the end of March and really didn't stop until the third week of May or so. We're just working off some of that froth.
Longer term, the Nasdaq 100 looks poised to go higher. Quite frankly, money needs a place to go. With so much liquidity in the markets these days, it's difficult to imagine that they won't flood the AI trade yet again. Given enough time, I like buying dips. I've got no interest in shorting.
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