NASDAQ 100 Technical Analysis

The NASDAQ 100 rallied a bit during the early hours on Thursday as we continue to see the buyers on dips. And I think at this point, we are probably going to have a situation where traders are looking at this through the prism of trying to find value. After all, the Federal Reserve has started to cut rates. And of course, Wall Street loves that.

Tesla had great earnings overnight. So that, of course, comes into the picture as well. And don’t forget, we have plenty of other companies out there with earnings reports. Nonetheless, the momentum is to the upside longer term. And we did have a nice recovery late in the day during the previous session. So, one would have to assume that we are going to start heading higher again.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has been very quiet in the early hours, but it is stabilizing. That of course is a major victory when you have spent three days selling off the market. All things being equal. This is a market that I think shows that we do have a certain amount of buy on the dip mentality, especially as the $41,900 level underneath is a massive support level with the 50 day EMA coming to the rescue as well. Either way, I think the Dow Jones 30 is much like the NASDAQ 100 in the sense that it is a buy on the dip scenario.

S&P 500 Technical Analysis

In the S&P 500, we have had a fairly strong move in the early hours, and it looks like we could go looking to the 5,880 level, which is where we peaked previously. And I do think eventually the S&P 500 does go looking to the 6,000 level. That being said, it is worth noting that all three of these indices could be affected by the flash manufacturing PMI numbers later in the day, as well as the flash services PMI numbers coming out of America.

Nonetheless, I think if we do get some type of knee-jerk reaction, the market continues to grind higher. It’s also worth noting that part of what’s been going on is that the interest rates coming out of the bond market in the 10-year specifically have been spiking. And that, of course, has people stepping away from stocks and heading into the bond market. And that’s part of the volatility that we’ve seen. However, when you look at the longer-term charts, the volatility really is nothing but a blip on the radar.