- Despite early weakness in overnight trading, the NASDAQ 100 remains firmly in an uptrend.
- Support near 25,500 appears to be holding, and traders anticipate potential gains toward 26,000 and beyond as year-end momentum builds.
The NASDAQ 100 opened the session falling in electronic overnight trading, but quite frankly, I think at this point it’s obvious that we are still very much in an uptrend. I think that continues to be the case. The 25,500 level is starting to offer a little bit of support, and we have bounced a bit from the absolute lows, but we may be in the midst of a market that’s simply trying to find a little bit of stability after what had been a very aggressive move to the upside. Nonetheless, this is a market that I think, given enough time, does go higher.
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Panic Pirates Out There Everywhere
I think there’s a lot of panicky, nervous behavior out there due to Palantir suggesting that perhaps the AI situation wasn’t quite as rosy as people had hoped. There are a lot of concerns about energy demand and adoption, and of course, the data centers. Obviously, the NASDAQ 100 will be heavily influenced by what happens with artificial intelligence, as it is the bubble—or flavor—of the year. As goes for companies like Palantir and Nvidia, so goes the entire index.
That being said, I think given enough time, we do reach the 26,000 level again, perhaps even the 26,300 level. Anything above there opens up the possibility of a move to the 27,000 level, and I don’t see any reason why we couldn’t get there. If we were to fall from here, I think the 25,000 level is an area that a lot of people will be looking for potential psychological support, especially as the 50-day EMA is racing toward that level.
With this, I think you’ve got a situation where traders continue to find plenty of reasons to get long. As we start heading toward the end of the year, we will have that natural proclivity to go higher as traders try to chase returns, especially as we get closer to December with the so-called Santa Claus rally. It’s a little early to bet on that, but that does tend to be the way the market moves later in the year.
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