The Nasdaq 100 rose a bit on Wednesday, as we are testing the crucial 30,000 level, an area that is also supported by a gap underneath.
NASDAQ 100
The Nasdaq 100 has rallied slightly during the early part of the session here on Wednesday, as the 30,000 level has offered support 3 days in a row.
Now, the question is whether or not we can break down from here and try to fill the gap underneath. We may. That would send the market down to about 29,600. If we drop from there and see some type of bounce, that is a nice buying opportunity. If we don't, then the floor in the market is at the 28,500 level, barring any new news, especially coming out of the Middle East.
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The 50-day EMA being there has already proven itself to be of interest, so we'll see how that plays out. If we break to a fresh new high, then that kicks off the next leg higher to about 32,000 or so.
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The Nasdaq 100 is currently paying close attention to the lack of clarity when it comes to the memorandum of understanding between the Iranians and the Americans, and, quite frankly, with Friday being a holiday, there's probably going to be very little interest on Thursday unless we get big news.
Short-term pullbacks, I do think, continue to attract traders who wish to participate in what has been a very strong uptrend for about 3 years now, with the occasional pullback. Maybe that pullback occurs, but quite frankly, I think that brings in a lot of institutional money.
Artificial intelligence trading is starting to cool off a little bit in the sense that people aren't necessarily chasing some of those names, but they are stabilizing. And if that kicks back off, that sends the Nasdaq 100 higher.
For several years now, we've been hearing about how the Nasdaq 100 is concentrated in too few names, and the reality is, we hear that year after year. So, if you get a handful of the stocks right, you get the Nasdaq 100 right. So, I think unfortunately a lot of this comes to the AI trade, and of course, the noise coming out of the Middle East. I'm looking to pick up value on pullbacks and a bounce to get on the right-hand side of the V.
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