NASDAQ 100 Technical Analysis
The Nasdaq 100 is slightly positive in pre-market trading on Thursday. But what I’m watching is the fact that we formed a pretty ugly shooting star on Wednesday. Are we going to get a bit of a pullback? Now, I do believe that a pullback ends up being a buying opportunity before it’s all said and done anyway. So with that being the case, I am not looking to short this market. On the other hand, if we can break above the top of the shooting star, that is a failed bearish pattern, meaning that the buyers are still very much in control, which is what I expect to see eventually anyway. The question now is, do we pull back towards 23,500 before doing that?
Dow Jones 30 Technical Analysis
The Dow Jones 30 finds itself right up against that major resistance barrier in the form of the 45,000 level. And now we have to ask whether or not we can finally break above there. It’ll be interesting to see how this plays out because we do get the PPI numbers and that will have an influence on industrials overall. And that could be one of the main things to send this market to the upside.
You could make some kind of argument for an insanely large, inverted head and shoulders, but really at this point in time, I am only looking for a breakout to go looking towards the 46,000 level. Right away short-term pullbacks are very possible, and I think they end up being buying opportunities with the 50-day EMA just below the 44,000 level offering support.
S&P 500 Technical Analysis
The S&P 500 is pretty quiet in the morning hours as we are still waiting for Wall Street’s open. Short-term pullbacks are very likely, and very likely going to end up being buying opportunities. We are starting to get somewhat close to the crucial 6,500 level, which of course has a certain amount of psychology attached to it, but we’ll just have to see how the market behaves around there. I do know that yesterday when I was watching the futures markets, right around 6,400, we were seeing a pretty big fight. So, the large, round number effect is still most certainly there.
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