The NASDAQ 100 has pulled back just a bit early during the trading session on Friday after the jobs report came out much hotter than anticipated. However, I think this is going to set up as a potential buying opportunity, mainly due to the fact that Meta was up 17% before the bell. That’s astonishing considering just how big that company is and how many people analyze as potential earnings calls.
That doesn’t happen every day, and of course that will have an outsized effect on the index. My anticipation is that by the end of the session, Wall Street will have convinced itself to start buying stocks again and the initial reaction to the jobs number will probably wear off. Even if we did pull back from here rather significantly, I still think the 17,000 level will probably offer a certain amount of support, while the 50 day EMA underneath there will do the same. I have no interest in sorting the NASDAQ 100 because it has shown itself to be impervious to gravity and all things gravitational. Therefore, you can only do what the market’s doing.
And at this point, it’s looking at every pullback as a buying opportunity. True interest rates are spiking again, but that will be a short-term phenomenon before Wall Street convinces itself that the Federal Reserve will have to do something to loosen monetary policy. At this point in time, it is a bullish market, so we have to look at this pullback as a potential buying opportunity and just simply be patient. You should have that opportunity in this market rather soon. Also, I think that if we turn around and break above the recent highs at the 17,700 level, there’s pretty much nothing stopping us from getting to the 18,000 level, which I wouldn’t be surprised to see in the next week or two, the way the market has been behaving.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.