The three major US indices all look as if they are going to continue to look to higher levels, although there are differing signs of momentum or strength.
The NASDAQ 100 rallied again overnight as we headed into the New York session. At this point, the NASDAQ 100 continues to see plenty of momentum. And of course, we’ve had good earnings from a handful of major technology companies overnight that have helped the NASDAQ 100 really start to take off. With that being the case, I think you’ve got a situation where short term pullbacks will continue to be buying opportunities and I think the 23,000 level is now your floor in the market, if you will. I have no interest in shorting this market. I think the NASDAQ 100 continues to be very bullish.
The Dow Jones 30 did rally a little bit in the early hours, but you can see has really kind of failed to launch so far. But regardless, I also recognize this is a scenario where traders will continue to see this as a market that is trying at least to pressure the ceiling above the 45,000 level, of course, the ceiling, if you will, and I think that is something worth paying close attention to. After all, if we can break above this large, round, psychologically significant figure of 45,000, then it’s very likely that the rest of the trading public will look at that as a signal to start jumping and piling into this market as the momentum really starts to pick up. I believe there is a massive amount of support at the 44,000 level.
The S&P 500 initially rallied a bit during the session but has given back a little bit as we head towards New York trading. Ultimately, I think this is a scenario where, eventually, we will continue to see an extension towards the 6,500 level. It may take some time to get there, but I believe it is probably only a matter of time before that actually happens. Ultimately, I like the S&P 500, and I do believe that the 6300 level will end up being a bit of a floor in the market.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.