- The Nasdaq 100 has rallied significantly during the early hours here on Thursday in pre-market trading as it looks like we are going to continue to try to rally.
- Foreign traders and early institutional traders look like they are in approval of the 25 basis point interest rate cut from the Federal Reserve.
- So, all things being equal, if the market pulls back at this juncture, then we probably find value on that drop.
All things being equal, this is a market that I think continues to see a lot of buy on the dip behavior. And if we rally from here, we are more likely than not to go looking at the top of the channel, and then possibly even the 25,000 level above as it is the next large, round, psychological figure that will attract a lot of attention.
On a Move Lower
If we turn around and break down below the 24,000 level, which is basically the bottom of the hammer from the previous session, then we could go looking at the 50 day EMA where we have the uptrend line sitting right there as well. That of course would be a nice little correction, but quite frankly, it looks like the animal spirits are back and the NASDAQ 100 will continue to attract a lot of attention.
It’s worth noting that Nvidia is fairly big in pre-market and Intel is screaming to the upside because of an Nvidia investment in that company. It’s actually up about 50%. So, watching these two stocks and a few others, it looks like technology is going to get the green light for the session that of course will help the NASDAQ 100 on the whole. So, we’ll just have to wait and see how this all plays out, but clearly it looks like it’s risk on, at least in pre-market trading.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
