The NASDAQ 100 initially rallied on Thursday but has given back gains to show signs of hesitation with a market that is currently looking at the 28,500 level as a floor.
I think we will see some interest in this market if we get anywhere near that.
Rallies at this point in time I think are still likely, but interest rates climbing early on Thursday has not helped the argument. We have rallied pretty significantly over the last several weeks. Maybe some sideways action here is what we are getting ready to see. A nice range bound market, that could be okay. It will work off some of this excess froth, and it could eventually give those who are not involved in the market a reason to get involved over time.
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With this, I do believe that the market will eventually find its way to higher levels and possibly even the 30,000 level. But the NASDAQ 100 needs interest rates to chill out. They are just simply too high for people to feel comfortable jumping in with huge positions. That could be accomplished by some type of progress in the Middle East between the Americans and the Iranians, or you never know. You may get some dovish comments, although I think that is very difficult right now for the Federal Reserve to be, simply because of the very real possibility of energy inflation.
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When I look at this chart, and this would be a little bit anticipatory, but it almost looks like we are trying to form some type of bullish pennant or maybe a bullish flag. Either way, I have got no interest in shorting.
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