Potential signal
- If we close on Friday above the 25,000 level, I will be buying for a bigger move to 26,000 above, and have a stop at 24,800.
Christopher Lewis here taking a look at the Nasdaq 100. The Nasdaq 100 has gone back and forth during the trading session here on Thursday as it looks like we are going to continue to see a lot of sideways action as we are trying to determine whether or not we can break above the 25,000 level, which is a large round psychologically significant figure.
I also look at this through the prism of whether or not the market can break above the 50-day EMA. I do think that the Nasdaq 100 has a real shot at going higher over the longer term, but I also recognize that there are a lot of questions.
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Supportive Resilience Amidst Pullbacks
The short-term pullback is likely going to end up being a bit of a buying opportunity. The 24,500 level has been important and of course we will have to watch all of the usual suspects. There are some concerns about the artificial intelligence bubble bursting, but really at the end of the day, I do think it is only a matter of time before the buyers prevail.
This is a market that has been fairly resilient considering all of the risk-off types of things going on right now and it is difficult to fight that type of momentum. Over the longer term, I do believe we revisit the highs at 26,275 and I think we break above there.
If we were to break down below the 200-day EMA, the 23,800 level ends up being supported and anything below there blows a hole in the bottom, then we have to step back and wait for the market to lift itself again at some type of V-shaped bottom that we can start trading.
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