US stock markets bounced slightly on MondayThe Dow Jones 30 and NASDAQ 100 both rallied slightly during the trading session on Monday, as traders came back from the weekend breathing a bit of a sigh of relief with a lack of escalation in Syria.
Dow Jones 30
The Dow Jones 30 pulled back slightly during the trading session on Monday, but then bounced enough to show signs of positive momentum. The market looks likely to continue to go higher over the longer term, with the 24,600-level offering short-term resistance. If we can clear that level, then the market rapidly goes to the 25,000 level. That’s an area that will obviously be psychologically resistant, but it is my target in the meantime. I think short-term pullbacks continue to offer value the people will take advantage of, barring some type of escalation in Syria or comments coming out suggesting that the United States and China are getting closer to a trade war.
The NASDAQ 100 has been noisy as well but did find enough buyers to continue to attempt to break above the vinyl 6700 level. If we can continue this move, it’s likely that we will see the NASDAQ 100 reach towards the 6800 level, and then possibly the 6900 level. I like buying dips, and I recognize the 6500-level underneath as being a supportive level and should bring in fresh money. Keep in mind that this market is going to be highly sensitive to trade war rhetoric between the United States and China, as it more than likely will continue to be a hot topic, and most certainly will have a massive influence on tech stocks. By its very definition, if we can stay out of a trade war, it’s likely that the NASDAQ 100 will breathe a sigh of relief, going higher.