- The NASDAQ 100 ended up being very sideways during the trading session on Friday as we continue to see a lot of ambivalence in this market due to the lack of a Non-Farm Payroll announcement, as the US government shut down.
- With that being said, there is a serious lack of momentum at the moment, so I think we have a situation where we may just drift back and forth. I would make a certain amount of sense, because we could work off some of the excess froth, which of course is common for a significant uptrend.
Furthermore, we also have to keep in mind that the 25,000 level is a large, round, psychologically significant figure that a lot of people will be paying attention to, and while it doesn’t necessarily mean that we have to pull back from here, it wouldn’t surprise me at all to see that happen, as the market will continue to be bullish over the longer term, but in the short term we may have to work some things off in order to attract fresh new buying.
Government Shutdown
The government shutdown of course has a minor influence on the markets, despite the fact that it also means that we will get poor jobs numbers. Quite frankly, I think a lot of traders are just simply trying to sit still for a while trying to determine whether or not there is any reason to put more money into work. I think at this point, we probably need to be very cautious with trying to get overly aggressive, but I still think this is a market that once the government reopens, there will probably be more or less an “excuse” to start buying again.
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Looking at the start, I think any time it dips you have to look at the possibility of buying the NASDAQ 100 due to the fact that we are in such a strong uptrend, but a couple of days going sideways with via a huge surprise either. Either way, the one thing that I now I will be doing in shorting this market.
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