Continues to See Upward Pressure as Tar

At this point, pullbacks will more likely than not offer a bit of value, as long as we continue to see traders willing to dive into the larger technology stocks.

• Over the last couple of days, I have been talking about the 13,750 level as a potential target for the NASDAQ 100, and we have in fact touched that area.
• Whether or not we can close above, there remains to be seen, but it is most certainly an area where we could see a bit of selling pressure.
• It’s worth noting that the NASDAQ 100 of course is going to be pushed around by a handful of stocks, so you need to keep an eye on the usual suspects like Meta, Alphabet, Tesla, etc. as they are an outsized influence on the index.

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At this point, pullbacks will more likely than not offer a bit of value, as long as we continue to see traders willing to dive into the larger technology stocks. Ultimately, the 13,200 level should offer a significant amount of support. Whether or not we even get down to that area remains to be seen, but it’s obvious that we have a lot of interest in the market, and therefore it’s likely that any pullback will attract a lot of attention.

Whether or not we can continue to go higher remains to be seen, but if the market does in fact take off to the upside, we could be looking at a move all the way to the 14,000 level. The 14,000 level of course would be a large, round, psychologically significant figure that a lot of people will be paying attention to. If we were to break above the 14,000 level, then it’s likely that we could see an even deeper run to the upside.

It is worth noting that the area that we are testing right now to the upside is a significant barrier, so it’s possible that we could see quite an explosion to the upside if we do in fact take off to the upside. Because of this, it looks like traders are still betting on the Federal Reserve easing interest rates, despite the fact that they have sworn up and down that, it’s not happening. With that being the case, expect a lot of noisy behavior. With this, it still remains a “buy on the dips” scenario, but the market is also a little overextended at the moment. With this, a little bit of patience probably goes a long way.

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