- The Nasdaq 100 initially tried to rally during the trading session on Wednesday, but then plunged to reach the 50-day EMA before bouncing again slightly.
- This is mainly due to the fact that the consumer price index numbers came out hotter than anticipated, and it suggests that perhaps the Federal Reserve will have to continue to fight inflation.
If that's going to be the case, you have traders on Wall Street worried about whether or not liquidity will start to dry up. This is the biggest issue that most traders fear on Wall Street in general, and I think this continues to be the case.
All things being equal, Nasdaq is a market that I think will continue to see the 17,775 level underneath offering support with the 18,500 level above as resistance. In general, this is a market that I think is likely to see a lot of back and forth in the short term, and it is still a very bullish market. So, every time we pull back, I think you have an opportunity to pick up a little bit of value when it does drop. If the market were to break down below the 17,775 level, then it's likely that we go down to the 17,500 level where we would see a lot of support also. I have no interest in shorting this market regardless.
The Upper Levels I am Watching
At this point in time, it's obvious that we do see a lot of upward momentum but if we can finally break above the $18,500 level then the NASDAQ 100 then opens up a move to the $20,000 level given enough time. In general, I think the volatility remains an issue as far as short term choppiness but longer term we still have plenty of buyers on each and every dip, as it offers plenty of value in a strong uptrend. I have no plans or interest in shorting this market, as it is far too strong at this point.
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