US stock markets rally during the session on Friday as the US dollar has taken an absolute pounding in the Forex markets. It’s likely that we will continue to see a “buy on the dips” mentality.
Dow Jones 30
The Dow Jones 30 broke above the 25,750 level, a very bullish sign. The market has been choppy during the day but most certainly with an upward momentum. I think that the market continues to be a “buy on the dips” situation, as not only are we seeing the US dollar getting hammer, but we are also focusing on corporate profits, and of course the tax bill that was just signed. Money seems to be flowing into the stock market every time it drops, so therefore I like buying these dips and adding to what is becoming a very large core position over time.
NASDAQ 100
The NASDAQ 100 went sideways initially during the session on Friday, but then pulled back to break below the 6700 level. That’s an area that has previously been resistance, and should now be support. In fact, it proves itself to be so, so then we rally towards the 6750 level, an area that looks as if it is offering short-term resistance. A pullback from this area is a buying opportunity, which makes sense considering that the NASDAQ 100 is just is bullish as the other indices in the United States. I’ve got no interest in selling this market, and I believe that the NASDAQ 100 will act very much like the S&P 500 and the Dow Jones 30, buying dips being the norm. I’ve got no interest in shorting this market, and believe that the 24-hour exponential moving average should continue to offer dynamic support as seen on the chart.
MORE WILL UPDATE SOON!!
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