Persistent Upward Momentum, Buyers Focus on Dips. Awaits CPI data near 18,000 level, with support at 20-day EMA and potential pullbacks.

• The NASDAQ 100 is still showing strong upward momentum overall, and it appears that this is a market where buying is the only option going forward.
• The same factors that have been driving the market for some time are still at play.
• Because of this, I think the market will continue to see a lot of dips just to turn around again.

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NASDAQ 100 Continues to Be Volatile

Examine the Nasdaq 100 index. As you can see, we have fluctuated a little bit in the vicinity of the 18,000 level. We are awaiting the CPI figures at the time I write this. It's a rather easy formula. Wall Street benefits from a weaker economy since they are always on the lookout for the newest handout. Thus, if inflation picks up speed, it will almost certainly be bad for stocks. However, if it turns out to be very weak, such as the economy slowing down, they will be thrilled and will begin purchasing once more. Having said that, I believe you are currently running a little channel.

Although it's not a flawless channel, it's close enough that you should, in my opinion, pay careful attention. In the end, this means that traders will keep treating dips as opportunities to buy and will continue to take advantage of cheap contracts. The 20-day EMA is still supportive, and given the psychology involved, I believe that the 18,000 level will be a region that attracts a lot of attention.

I'm not sure if there is a lot of support or opposition there. It is merely a rounded figure. Our trend is upward. Fighting this uptrend is hard. And I do believe that in this context, you have to view it through the lens of potential value each time it pulls back. In my opinion, there is strong support not only at the channel's bottom but also possibly at the 50-day moving average if we do break down.

Naturally, because the NASDAQ 100 is not a weighted index with equal weights, it is dominated by a small number of stocks. It is a momentum-driven index, of course. For the most part, because of this, anyhow. There are undoubtedly many buyers at this point, and I think that continues to be the biggest issue here.

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