- The NASDAQ 100 plunged during the early hours on Tuesday as New York came back to work but then turned around to show signs of life again.
- This suggests to me that we are at least going to have a bit of a fight on our hands, and that the buyers are willing to jump in and try to pick things up.
- The 50 Day EMA sits at the 24,093 level underneath, offering a bit of support at this juncture.
Market participants continue to look at this is a market that I want to put money into, and it’s worth noting that most of the selling in the NASDAQ 100 was done early, only to turn around and recover. Whether or not we can continue to go higher us a completely different question, but the fact that the market plunged on Friday, rallied on Monday, and then stabilized on Tuesday is a good sign.
Upward Trend
We are still very much in an upward trend, as despite the fact that the last couple of days have offered a little bit of negativity, the reality is that we are still in an up trending channel, and that is something worth paying close attention to. Furthermore, we are sitting just above the 50 Day EMA, and just below the 25,000 level.
The 25,000 level has a certain amount of psychology attached to it, so if we can break above there then it’s likely that we could go higher. A breakdown below the uptrend line of the channel opens up the possibility of a move to the 23,250 level. The 23,250 level of course is an area that a lot of people will be paying close attention to based on “market memory.” If we break down below there, then we could see quite a bit of negativity in this market. Alternatively, if we can break above the 25,250 level, then I think we are ready to go higher again.
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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.
