The Nasdaq 100 has rallied rather significantly during the trading session on Thursday as we have bounced from the crucial 27,000 level.
The 200-day EMA sits just below there, and we are getting close, as I record this, to wiping out the entire day from Wednesday, which was the Federal Reserve interest rate decision.
This is not that uncommon because, quite frankly, it seems like the market tends to get it wrong on FOMC days. We'll see a big lunge in one direction and then a reversal.
So as traders are out there buying this up, the next question will be what happens at the 28,500 level? The 28,500 level is an area that previously had been support, so one would assume that it ends up being resistance based on market memory. If the Nasdaq 100 can break above there, it would be a very bullish sign indeed.
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Ultimately, I think you've got a situation where traders are starting to rethink the whole idea of the Federal Reserve because if they are farther away from hiking than was feared, that could add more fuel to the fire. Furthermore, the situation in the Middle East, although messy, doesn't really seem to be deteriorating more than the occasional blip. If that's the case, that might help risk appetite as well.
Regardless, it certainly looks like the buyers are back, at least on Thursday, and this is a market that looks pretty strong all of a sudden. This is a market that will continue to attract inflows, if for no other reason than the passive investing crowd is so entrenched.
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