Nasdaq 100 Technical Analysis
The Nasdaq 100 has bounced a little bit during the early part of Friday, as it looks like the 200-day EMA is just below current pricing, and price action is going to have an influence on what happens next. The 25,000 level is a large, round, psychologically significant figure, and if we can break above there, I think that sends people into the weekend with a pretty good feeling.
The market has been consolidating for a while. We’ve had some earnings calls that have shaken the market back and forth. There are some concerns about artificial intelligence, but this looks to me like a market that’s just consolidating.
Dow Jones 30 Technical Analysis
The Dow Jones 30 looks pretty stout early during the session as we are back above the 49,000 level. I do believe it is probably only a matter of time before we find ourselves looking at the 50,000 level, but I also recognize that it may take some time to get there because, quite frankly, we’ve just been killing time since the beginning of the year, chopping around looking for a reason to get bullish.
I think 50,000 is a little bit of a psychological barrier, and that is part of what’s going on here, but ultimately, once we get through earnings season, I anticipate we go higher, especially with the US economy doing better.
S&P 500 Technical Analysis
Speaking of psychological numbers, the S&P 500 continues to eyeball the 7,000 level above. I think that’s going to serve as a barrier. I also think it serves as a magnet. It looks like we are trying to recover. If we can take out the top of the candlestick from Thursday’s sell-off, that’s a very bullish sign.
I do think we will go higher over the longer term and although earnings season will cause some headaches here and there as it typically does, I think overall this is still a market that you want to buy dips in.