NASDAQ 100 Technical Analysis
The Nasdaq 100 initially tried to rally a bit during the early hours on Wednesday only to turn around and drop again. Now, I don’t necessarily think that the NASDAQ 100 is about to enter a negative trend, but we do have non-farm payroll announcements on Thursday that probably have people somewhat cautious about trying to jump in with a huge position. All things being equal, this is a market that I think, given enough time, probably looks at the $22,000 level as massive support. If we can break above 22,750, then I think we will go much higher.
Dow Jones 30 Technical Analysis
The Dow Jones 30 looks a bit exhausted as well. Quite frankly, we just got to this supply way too quickly to perhaps continue to run higher. With that being the case, you’ve got a situation where traders are probably going to continue to see a lot of ugly behavior, but I also recognize that even if we do drop from here, the 43,500 levels should be massive support. And that’s assuming that we can even get there. I still think we test the 45,000 level given enough time, but we need some type of catalyst to get there. Perhaps it’s the jobs number on Thursday. We just don’t know yet. But at this point in time, I think we’ve got a situation where you have to look at this as a market that when it drops, it offers value.