Dow Jones 30
Yesterday, I told you that breaking through the bottom of the uptrend line on the hourly chart could have been a negative sign, or could have been a sign that we were ready to consolidate overall, as the market had rallied significantly, and we were about to lose a lot of volume. As we have bounced later in the day, it looks very likely that we are going to continue to go sideways, and simply wait for some type of momentum to push the market to the upside. The 24,700-level underneath is supportive, just as the 24,850 level above is resistance. I think that we will continue to go back and forth in light volume, but longer-term the 25,000 is of course the overall target, and an area where we will see a lot of fighting.
Dow Jones 30 and NASDAQ Index Video 22.12.17
NASDAQ 100
The NASDAQ 100 also went sideways early in the day, but then rallied as we reached towards the 6500 level. It’s possible that we continue to bang around in a tight 50-point range over the next couple of sessions, but I think that as we get past the New Year’s holiday, we will probably see the NASDAQ 100 traders push this market to the upside, breaking well above the 6525 handle and adding to an already impressive uptrend. Short-term pullbacks look very likely to be supported, especially near the 6450 handle, and obviously the 6400 level. Expect noise, but overall, I believe that a “buy on the dips” algorithmic feel to this market should continue.
This article was originally posted on FX Empire