- The Nasdaq 100 has broken higher yet again during the trading session here on Thursday as we are clear and free to continue rallying.
- We get the PCE Core index numbers coming out on Friday. So that will cause a hiccup in the market.
- At this point in time, if we get a pullback, I think that opens up the possibility of a buying opportunity.
The 22,066 level for me is an area that is worth watching as potential support. So, I’ll have my eye on that as well, as well as the 50 day EMA, which is closer to the 21,137 area.
Shorting is All but Impossible Here
Ultimately though, this is a market that I have no interest whatsoever in shorting. I think any pullback offers value and I do expect this market to go look into the 23,000 level given enough time. Nvidia is on fire at the moment and that of course has been pushing this index higher, but as we had broken down significantly and bounced so much, it looks to me like now we’re past all of that tariff concern and are just simply going to continue to the upside.
I have a certain amount of respect for an overextended move like this as needing to pull back. But that pullback again, I think, will only end up being a buying opportunity for those who are patient enough to wait for a pullback and then a bounce to get on the right side of the V.
As far as shorting is concerned, as I said, I don’t really want to, but if we broke down below the 50 day EMA, I’d have to start to question the trend, but we are miles away from that at the moment, so it is just something to keep in the back of your mind more than anything else.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
