- The Nasdaq 100 looks like it is trying to stabilize a bit in the early hours of Tuesday.
- And in fact, they even spent part of the pre-market trading session rallying.
- The fact that we are even remotely stable after the last two candlesticks suggests that we are eventually going to try to go higher, giving it enough time.
- I think that makes a lot of sense. We've been in an uptrend for some time.
Despite the fact that the jobs numbers were so bad in America, traders will just look at that as a potential opportunity for the Federal Reserve to cut rates, which is what most traders hope for.
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It's a perverse relationship between the Federal Reserve monetary policy and equities, but it's been that way since the great financial crisis. If we can continue to go higher, I believe that the 23,700 level is the target. And then after that, you'd be looking at 25,000 eventually. Short-term pullbacks are very possible, but they are also more likely than not to offer buying opportunities for those who want to take advantage of the overall trend.
The 22,500 level for me is a major floor in the market where the 50 day EMA currently resides and is rising to all things being equal. This is a market that I'm looking for short-term dips to take advantage of, but I do recognize It could be fairly noisy along the way. So do keep that in mind.
This isn't a straight shot up in the air. It's a lot of noise over the last couple of sessions that will have to be worked through. But ultimately, we've got earnings season going on right now in technology, and that will continue to push this market higher.
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