NASDAQ 100 Technical Analysis
The Nasdaq 100 initially pulled back just a touch during the trading session on Friday but has made an attempt to turn things around as the CPI numbers, the core CPI numbers at least, came out as expected but the longer-term ones are actually a little lower than thought and this will maybe kick off the idea of cheap money coming back to save Wall Street again. Regardless, we are still very much in a consolidation range, and it looks like a market that will bounce eventually.
Dow Jones 30 Technical Analysis
The Dow Jones 30 is trying to turn things around as it looks like it is very well supported just below, perhaps all the way down to the 49,000 level. The 49,000 level is also backed up by the 50-day EMA so I think you’ve got a situation where traders will be looking to take advantage of any bounce that occurs. If we were to break down below the 50-day EMA, then it is possible that we could drop to the 48,000 level.
S&P 500 Technical Analysis
The S&P 500 has bounced from a crucial level in the form of 6,800 and as long as we can turn around and break above the 50-day EMA it would be a very positive sign, perhaps opening up the possibility of a move to the 7,000 level.
A break above the 7,000 level would be a major turn of events and could kick off more of a FOMO trade. I have no interest whatsoever in shorting this market. I do think eventually it will recover, especially if we start to go with the cheap money narrative again.