The Nasdaq 100 jumped early, but gravity came back as the opening bell rang on Wednesday.
Nasdaq 100 (US100)
The Nasdaq 100 spiked a bit at the open here on Wednesday but has given back some of those gains as it looks like the 30,000 level is going to cause a little bit of a barrier. All things being equal, though, this is a market that has seen a significant turnaround and looks like it has a lot of momentum on its hands. Short-term pullbacks, I think, probably continue to attract some attention. We'll see whether or not we can get above that 30,000 level because I think that's the key for the longer term.
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The 50-day EMA sits right around the 28,900 level and is the bottom of the candlestick from the Tuesday session. That is an area that I would like to see hold if we do pull back, because it could offer a little bit of value. Breaking above the 30,000 level is a major psychological victory, and it opens up the possibility of reaching all-time highs, something that the S&P 500 and the Dow Jones 30 both did during the previous session.
Technical Resistance and Earnings Drivers
Ultimately, this is a market that I do think will end up being bullish, but there are a lot of concerns out there. There's a lot of hope that maybe something happens with the Middle East that allows the conflict between the Americans and the Iranians to finally stop. I don't know that this is going to end anytime soon, and quite frankly, I think the markets are starting to get comfortable with that, as odd as that sounds.
I think it's more or less a question of whether it turns into a full-blown war, and I think we've seen both sides aren't really wanting to go down that road, so that might be part of the celebration via higher prices as well. We are in the midst of earnings season. That causes some shake-ups. For example, last night AMD reported good numbers, but not great, and the market punished them for it.
Nvidia took off after SpaceX announced that it was only using Nvidia chips, so that's part of what we've seen help early in the session. We'll just see how this plays out. I do think value is to be found on dips until proven otherwise.
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