- The Nasdaq 100 initially at the open in New York jumped to a new all-time high and then fell.
- That being said, I don’t think there’s a lot to worry about with the trend.
- I think short-term dips will continue to be buying opportunities as market participants continue to look at this through the lens of a longer-term bullish trend.
It’s also worth noting that at the end of the day, we will have options expiration so it could cause a lot of chaos. The 23,000 layer of orders in the past has been important. So, if we pull back to that area, I would anticipate seeing a little bit of a pushback from the bullish traders out there. If we drop down below there, then the 22,250 level is an area that I think is even more supported due to the fact that it was previous resistance. I don’t like the idea of shorting indices regardless, and I certainly don’t want to do it in an uptrend.
Shorting is Almost Impossible
Remember, indices are designed to go higher. Period. End of story. This is because they are not equally weighted, so just a handful of the large stocks can get them running higher. After all that being said, this is a market that continues to see just a handful of stocks out there, move things, and those stocks are all the usual suspect.
So, with that being the case, I like the idea of getting involved on short-term pullbacks, perhaps aiming toward the 23,500 level above, and possibly even higher than that. Again, I have no interest whatsoever in shorting this market. I think it’s been far too strong over the last couple of months. You’re just looking for value to take advantage of.
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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.
