The Nasdaq 100 continues to see buyers on dips for the Thursday session, as we are looking like a market that doesn’t want to be short heading into the 3-day weekend.
Nasdaq 100
The Nasdaq 100 rallied pretty significantly during the trading session on Thursday as we headed into a 3-day weekend. The 3-day weekend is based on Juneteenth on Friday, and that, of course, will have the stock indices closed. Ultimately, we are above the 30,000 level, and I think it's probably more likely than not a scenario where the 30,600 level gets targeted.
Short-term pullbacks, I think, are buying opportunities. There is a gap that was filled during the Wednesday session, and I think ultimately that's the pattern we're going to see. Anytime it pulls back, there will be buyers. You can see that's been the case since April, and really not much has changed.
Federal Reserve Policy and Technical Support Levels
The Federal Reserve is likely to have to raise interest rates by 25 basis points between now and the end of the year, but I don't think that really determines where we go next. The Nasdaq 100 is essentially 7, maybe 10 stocks, and with that being the case, as long as those companies do fairly well, then it's likely that we go higher.
Longer-term trend for me, at least, is defined by the 28,500-level offering support right along with the 50-day EMA. If we were to break down below there, then I would start to look to buy somewhere closer to the 200-day EMA, but as things stand right now, this looks to me like a market that every time it drops, it gives you an opportunity.
But as I said, Friday won't have the underlying index trading. If you're trading CFDs, you're not actually trading the real market, so that will be essentially a made-up price; it won't be able to follow anything. There is some early morning in Asia electronic futures trading, but that's about it. I believe the uptrend is still very much intact.
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