NASDAQ 100 Technical Analysis
The Nasdaq 100 has pulled back just a touch in the early hours here on Tuesday, which makes a certain amount of sense considering that we shot straight up in the air on Monday. Nonetheless, I think this is still a very positive market, and I believe any type of pullback from here just opens up value. The $25,000 level should continue to be supported, with the 50-day EMA sitting right around that area as well. Ultimately, this is a market that, given enough time, should open up the possibility of a bigger move toward $27,000. Of course, we have that Santa Claus rally coming, which does not look to have been canceled so far this year.
Dow Jones 30 Technical Analysis
The Dow Jones 30 is slightly positive in comparison and, at this point, appears to be trying to break out to the upside, potentially returning to the 48,000 level. The 48,000 level, of course, is where we had peaked previously. Now the question is, can we get above there? I think that’s probably true. If we can break above $48,000, then it opens up the possibility of a move to $49,000. Short-term pullbacks continue to be buying opportunities.
S&P 500 Technical Analysis
The S&P 500 has pulled back just a touch during the early hours on Tuesday as well, but it should still see the $6,800 level as important. The $6,800 level, of course, is a large, round, psychologically significant figure that a lot of people will be watching, and therefore, I would be interested in some type of bounce there. Even if we break down below that level, the 50-day EMA and the uptrend line both come into the picture, opening up the possibility of a floor. After all, this has been a nice channel for quite some time, and that does suggest continuation. All things being equal, I’m a buyer of dips that show signs of a bounce.
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