- The Nasdaq 100 initially did rally a bit during the trading session on Wednesday but has given back quite a bit.
- With that being said, the market ended up forming something close to a shooting star in the afternoon and I think a pullback from here does make a certain amount of sense.
- I think ultimately, that should be a buying opportunity, though, because we are clearly bullish and we did break to a fresh all time high sometime during the session.
The twenty two thousand level is an area that I think a lot of people will be watching closely on a pullback. So, I would consider buying that bounce if we in fact do get it. If we break above the top of the candlestick, that’s an extraordinarily bullish breakout, and then at that point in time, I think you probably see NASDAQ 100 just simply take off to the outside.
NASDAQ 100 Leads the Way for Others
The NASDAQ 100 has been leading the other indices in the United States. So, it is worth noting that even if you’re not trading in this market, you can watch the S&P 500, the Dow Jones Industrial Average, whatever. I don’t have any interest in shorting any of the U.S. indices, but the least of which that I have any desire would be this market.
It is far too strong, and you just simply cannot argue with this type of momentum, it’s a great way to lose money. So, I’m looking at dips as potential buying opportunities in a market that continues to outperform everything else. That doesn’t mean we can’t drop. It doesn’t mean that the trend can’t change. It just means that right now, at least, it looks like everything is pointing to higher levels. And quite frankly, despite the fact that we did sell off at the end of the day. There’s just so much in the way of bullish pressure over the last couple of months that it’s almost impossible to get bearish now.
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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.
