This is a market that I think will be testing the 16,000 level, probably much sooner than a lot of people think.

The Nasdaq 100 initially pulled back during the open on Monday but has seen the 15,000 level offer significant support. This should not be a huge surprise as we have played the retest of the breakout in a common technical analysis sort of way. That being said, Tesla has announced that it is upping its guidance going forward and, as the Nasdaq 100 is really only about five stocks, it should send this market much higher.

Because of this, all you can do is simply buy the dip, but that is exactly what you would anticipate, as the market has seen that the buyers come in no matter what happens next. That will more than likely continue to be the case because this is what you get when you have a top-heavy index. It only takes a few companies moving in order to move this index. We have been very bullish for some time, and I think that the uptrend line underneath continues to offer support going forward. If that is going to be the case, then I think this is a market that needs to be bought on dips, and you just simply buy and hold it over the longer term.

If we do get any type of significant selloff, the Federal Reserve will be there to save Wall Street and various hedge funds, as they have been forced to do multiple times over the last 13 years. Until that dynamic changes, there is absolutely no way you can convince me that it is a good idea to start shorting this index. If we break down below the 14,000 level I might be a buyer of puts, but that looks increasingly unlikely. The 50-day EMA is approaching the 14,500 level, and that is an indicator that a lot of people pay attention to and probably will attract attention even if we do break down. Given enough time, this is a market that I think will be testing the 16,000 level, probably much sooner than a lot of people think as there is simply no other alternative with yields going lower. Remember, lower yields typically do good things for technology stocks, as in that environment most people are looking for growth because dividends simply will pay the bills, and most certainly bonds will not if you are looking to clip coupons.

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