NASDAQ 100 Price Forecast – NASDAQ 100 Continues to Rally

NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied again during the trading session on Thursday in the early hours, as we continue to look at this through the prism of a potential buy on the dip scenario. The 20,000 level of course is an area to which a lot of people would be paying close attention and therefore, I think you have to look at that as your new floor in the market.

I don’t have any interest in trying to get too cute with this market and shorting it, but I do think that we probably desperately need some type of pullback. That pullback should more or less be an opportunity to pick up value in a market that is extraordinarily bullish. If we were to break down below the 20,000 level, then the market could drop down to the 19,800 level.

In general, I think this is a market that continues to rally based on the idea that the Federal Reserve cutting interest rates and the fact that they just cut by 50 basis points has a lot of risk takers out there willing to throw money at the market.

This generally works for a while and then you have to wonder why they cut by 50 basis points sooner or later. Especially if they do the 50 basis point cut again, that means they’ve lost the economy, then you start to see panic, but in the short term it certainly looks as if it is going to remain bullish and buy on the dip.

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