NASDAQ 100 Technical Analysis
The NASDAQ 100 is up slightly in the pre-market trading on Wednesday, as it looks like we are trying to hang on to the 23,000 level. Ultimately, this is a market that I do think goes sideways for a moment as we try to catch our breath and determine whether or not the recent employment and PMI numbers are something worth worrying about or celebrating in the sense that the Federal Reserve may come to everybody’s rescue after all. I think at this point in time, the markets are just looking for a reason to go higher. So as a general rule, I look at dips as buying opportunities.
Dow Jones 30 Technical Analysis
The Dow Jones 30 has rallied a bit as well, and it’s probably worth noting that the Dow Jones performed a little bit better than the NASDAQ 100 did during the previous session anyway, so this should not be a massive surprise. Ultimately, I like the idea of buying dips here as well, and I do think that we eventually go looking toward the 45,000 level above, although that doesn’t necessarily mean that it’s going to be easy to get there. Underneath current trading, I think the 50-day EMA has to be thought of as potential support.
S&P 500 Technical Analysis
The S&P 500 has bounced a bit in the early part of the Wednesday session as well, and it now looks as if we are going to try to get back to the 6400 level. Even if we don’t, I think there’s plenty of support near the 6300 level as well as the 50-day EMA to offer buy-on-the-dip opportunities in what’s obviously been a very bullish market anyway. I have no interest in shorting the S&P 500 or any other US index for that matter, so at this point in time, it’s just an issue as to whether or not I can find value.
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