Nasdaq 100 Technical Analysis
The Nasdaq 100 looks as if it is trying to break to the upside as a break above the 50-day EMA could open up a much bigger move, perhaps to the 26,000 level, maybe even the 26,275 level. Short-term pullbacks continue to be a buying opportunity from what I see, with the 25,000-level offering a short-term floor at this point in time.
Dow Jones 30 Technical Analysis
The Dow Jones 30 looks as if it is ready to break out to the upside as well and I do think it’s probably only a matter of time before we go looking to the 51,000 level. I have no interest in shorting this market. I do think that if we get any type of pullback and bounce, then I think we give ourselves an opportunity to pick up cheap contracts.
The 49,000 level is sitting the 50-day EMA hanging around there, offering an opportunity for traders to get involved in what is a longer-term uptrend that has a lot of momentum built up into it. I have no interest whatsoever in shorting this market anytime soon.
S&P 500 Technical Analysis
The S&P 500 looks as if it’s on its way to trying to break above that 7,000 level and given enough time, I do think it will. If that happens, then the market is likely to go looking at the 7,200-level based on the measured move of the consolidation range that we have been in for a couple of months now.
If we do fall from here, a bounce and buying on the right-hand side of the V is probably the way to go, with 6,800 being a massive floor. I do not have any inclination to short any of the indices in the United States and I do think that it is probably only a matter of time before we see enough in the earnings season and of course the strength of the US economy to push this much higher.