It’s obvious that the NASDAQ 100 wants to go higher, so I don’t necessarily want to start shorting this market, even though I would anticipate that there should be some type of pullback in the short term.
- The NASDAQ 100 has shot straight up in the air again during the trading session on Thursday, as we continue to see a lot of bullish pressure.
- That being said, I think we’ve got a situation where we are approaching a major resistance area, in the form of the 13,000 level.
- Furthermore, we also have the Non-Farm Payroll announcement coming out on Friday, so there are a lot of things that could come into the picture.
It’s obvious that the NASDAQ 100 wants to go higher, so I don’t necessarily want to start shorting this market, even though I would anticipate that there should be some type of pullback in the short term. After all, we are getting a little overbought and exhausted, so therefore it’s a situation where we will more likely than not see some type of pullback, but buyers come back in. I’d be especially interested near the 200-Day EMA, near the 12,150 level. At that point, I think a lot of technical traders would get involved, but quite frankly I don’t expect to see Friday send this market all the way down there. That would be a bit of a multi-day move
It’s Hard to Bet Against this Market
If we continue to go higher, then the market is likely to look towards the 13,500 level, which is an area where we’ve seen a lot of selling in the past. I don’t want to see this market do that, but if it does, the reality is that it is starting to get way out of hand. Quite frankly, the economy probably can’t support this market forever, but it’s obvious that we are in a bit of an exuberant phase at the moment, and therefore it’s difficult to step in front of it.
I will be especially interested in how we close heading into the weekend because it could give us an idea as to whether or not the pullback will be short or significant. I think at this point it’s hard to bet against this market, but at this point, it’s likely that the market will eventually run out of that momentum. It’s a bit scary at this point, to try and chase this market, and at this point it would be very foolish due to the fact that sooner or later we will have to find more buyers, meaning that we will have to offer more of a discount.
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