It’s a market that looks very strong and I think it will lead the way when it comes to indices in the United States.
The NASDAQ 100 rallied significantly during Thursday’s trading session to once again hit all-time highs. to find reasons to be long again. We have formed a massive bullish flag so I have no interest in trying to sell this market. The length of the flag suggests we could move towards the 18,000 level, but that’s obviously a longer term goal.
Looking at this chart, I think the 16,000 level will offer significant support, especially as the 50 day EMA starts to rush towards it. All things being equal, there are only a handful of stocks that move this market, and these are all the ones everyone loves. For this reason, I think it’s a market that will eventually find its way much higher, and so we may only need to watch out for a handful of âWall Street darlingsâ such as Tesla, Microsoft, etc. . Having said that, it is very likely that we will continue to see declining buyers, and this is how I think we will end up going much higher.
As we prepare to go through the “Santa Claus rally”, it is likely that we will continue to see a line of chase. As long as the markets prepare to see a lot of money pouring into them, it makes sense that we continue to go higher. The bullish flag itself is well known and almost anyone in the markets can see it. Actually, I don’t have a scenario in which I would be willing to sell this market, but if we were to fall below the 15,000 level, then maybe I could buy options at that point. Nonetheless, it is a market that looks very strong, and I think it will lead the way when it comes to indices in the United States. Ultimately, we’ll continue to see a lot of momentum here, especially as we’ve moved closer to the very high end, which usually means you’re going to see quite a bit of following.