NASDAQ 100 Technical Analysis
The NASDAQ 100 looks very much like a market that wants to go higher, given enough time, and I think at this point in time, we are looking toward the 25,000 level. The biggest problem, of course, is going to be the fact that we have the Federal Reserve interest rate decision on Wednesday. That’s obviously going to have a major influence.
I think we could see a little bit of position squaring at the end of the Tuesday session. So, I would expect a little bit of volatility. I don’t think you just pile into this market. There will probably be the occasional pullback that I suspect a lot of traders will take advantage of.
Dow Jones 30 Technical Analysis
The Dow Jones 30 looks a little bit positive in the early hours here on Tuesday. Really, at this point, though, it has been a laggard for a while. I don’t know if this is a market that I am excited to jump in and start buying. But if we could clear the 46,300 level, I might get long. If we pull back to the 45,000 level, I would suspect that there’s probably quite a bit of support there based on the large, round, psychologically significant figure and the fact that the 50 day EMA also sits right there as well. So ultimately, you’ve got a scenario where traders are going to be looking at this through the prism of perhaps a buy on the dip scenario. After all, we have seen a lot of grinding to the upside type of behavior.
S&P 500 Technical Analysis
The S&P 500 also looks a bit positive during the trading hours here and the pre-market trading of Tuesday. It looks like we are more likely than not to continue to find one reason or another to go higher. If that’s going to be the case, then I anticipate that 6,700 will be targeted sooner rather than later, and it’s probably worth noting that short-term pullbacks have been buying opportunities on the way to where we are now.
The 6,500 level, of course, would be very important as it was a previous resistance barrier. And of course, it is a large, round, psychologically significant figure. So, I think a lot of people would be very interested in buying any dips that occur. Again, though, you have to worry about the Fed meeting on Wednesday. So, by all means, be careful.
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