NASDAQ 100 Signal: Continues to Grind Higher

Whether or not it is sustainable is a completely different situation to think about, but I think ultimately that we are going to try to get to the 15,000 level.

• The NASDAQ 100 rallied a bit during the trading session again during the trading session on Tuesday, as we continue to see upward pressure.
• That being said, traders paid close attention to the CPI number that came out as anticipated, therefore I think a lot of people are expecting that the Fed will in fact pause during the Wednesday session.

At this point, the market looks as if it is going to do everything, he can to get to the 15,000 level, and it would not be surprising at all to see this market try to reach that level very quickly. Ultimately, I think that dips continue to be bought, as this is a bullish market. Underneath, the 14,400 level offers a significant amount of support, followed by the 14,250 level.

It’s probably worth noting that the 50-Day EMA is sitting right at the 13,750 level and rising, so I think at this point in time it is going to be the “floor in the market”, or at least the “floor in the uptrend.” With this being the case, I think that any pullback toward that area offers value that a lot of people will be willing to chase. After all, there has been a huge “FOMO trade” recently, and therefore it’s possible that we could see this market continue to attract more inflows.

Waiting for the Federal Reserve Announcement 

That being said, keep in mind that the NASDAQ 100 is driven by a handful of stocks, and therefore as long as the bigger companies such as Tesla continue to attract a lot of inflows, it will automatically push this market to the upside. Whether or not it is sustainable is a completely different situation to think about, but I think ultimately that we are going to try to get to the 15,000 level. I don’t necessarily think this is a situation where we have a lot of clarity other than the fact that everybody is starting to chase stocks at this point. This typically ends very poorly, but in the short term, I think you have to assume that sooner or later on every depth there will be buyers willing to get involved. Whether or not we can break above 15,000 is a completely different question obviously.

Potential signal: The NASDAQ 100 continues to rally, but I think as we head into the Federal Reserve announcement on Wednesday, what I’m hoping for is some type of pullback in order to take advantage of. On a pullback toward the 14,600 level, I would be a buyer with a stop at the 14,400 level. I am targeting just a few ticks below the 15,000 level.

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