Dow Jones 30
The Dow Jones 30 initially went higher during the session on Wednesday, testing the 21,500 level. That’s an area that caused a bit of resistance, and I believe that the pullback suggests that there is plenty of support just underneath, near the 21,400 level. Now that we have rallied from there, the market looks as if it is testing the 21,500 level again, and a break above there should send this market looking towards the upside longer term. The interest rate outlook for the United States is going higher, but then again it also helps the market look at the US economy as potentially strengthening. This is a market I believe that continues to be a “buy on the dips” type of situation.
Dow Jones 30 and NASDAQ Index Video 06.7.17
NASDAQ 100
The NASDAQ 100 went sideways initially on Wednesday, then exploded to the upside. Not only did we fill the gap from a couple of sessions ago, but it looks as if we are reaching towards the 5700 level above which should be resistive. I believe that a break above there sends this market much higher, and has the NASDAQ 100 leading the rest of the US indices higher, as it has previously been a leader in the past. I think that either way, this market will eventually go higher, and pullback should be buying opportunities. The question isn’t so much as to which direction to trade, whether we are building up momentum is the question. However, if we were to break down below the 5500 level, then the market could be one that’s sold longer-term, as the uptrend will be over. Given enough time, I believe that the NASDAQ 100 will go to the 6000 handle above as it is a large, round, psychologically significant number.
This article was originally posted on FX Empire