- The Nasdaq 100 shows renewed bullish momentum as buyers push the index toward a key resistance level.
- Seasonal strength, including the typical December rally, supports continued upside, while any short-term pullbacks appear likely to attract renewed buying interest.
The Nasdaq 100 initially fell during the trading session on Wednesday but has seen buyers come back into the market to pick things up. We are threatening to break above the 25,750 level, and if we can break that area, then it's likely that the Nasdaq 100 will continue to go to the upside, perhaps to the 26,350 level, where we had topped out previously.
Top Forex Brokers
Keep in mind that this is the month of December, and December is typically very bullish for stock markets in America, as the so-called Santa Claus rally still has an effect on the psyche of markets. This is generally the time of year when those who have not had good years or at least not good in comparison to their contemporaries will have to jump into the market and pick up the right stocks and own all of the right names.
Seasonal Bullish Pressure
This ends up putting a little bit of bullish pressure on the entire situation. And as a result, traders will typically jump in and try to take advantage of any momentum, and it becomes a self-fulfilling prophecy. If we do pull back from here, the 25,000 level is an area that I think a lot of people will be watching, as it is a large round psychologically significant figure, and the 50-day EMA is sitting right in that area as well. Ultimately, I am bullish, and I think short-term pullbacks will continue to be buying opportunities going forward. And as a result, it's likely to eventually break to a fresh new high over the next couple of weeks.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.