NASDAQ 100 continues to threaten move to the upside
The NASDAQ 100 has rallied again during the Thursday trading session, as the market is now looking at the 13,000 level as a potential target. We had recently seen a significant bounce from the 12,000 region, and since then have seen the so-called “golden cross”, when the 50-Day EMA breaks above the 200-Day EMA. While a longer-term signal, certain algorithms will kick off in the market to start buying at that point.
It’s worth noting that the Relative Strength Index (RSI) is strong, but not in the overbought condition. In other words, even the oscillator suggests that we could have further to go. Pullbacks at this point in time should continue to attract a certain amount of attention, especially near the 12,600 level, an area that had been support just over the last several sessions.
Traders follow NASQAD 100 closely
For those who pay close attention, you could make out a potential “cup with handle” pattern on smaller time frames, and the measured move is actually going to be just a bit above 13,000. Obviously, interest rate markets will have their say as well, because if interest rates are to rally in the United States, that could put downward pressure on risk assets such as technology stocks.
Expect a lot of choppy behavior, but at the end of the day, this is a market that has been rallying for a while and you can also make out a Polish flag that recently had been broken above in the last couple of weeks. In other words, all the technicals line up for a move higher, despite the fact that there are plenty of fundamental reasons that traders might be a bit skittish about buying the NASDAQ 100, as it is so highly sensitive to risk appetite and of course volatile. That typically would be a negative situation in the economic environment that the world finds itself in, but momentum seems to be the biggest driver of markets this year, and it’s clear that momentum is on the side of the buyers in this index.
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