August 3, 2022
  • August 3, 2022

Index fails 50 day EMA again

By on May 19, 2021 0

While the NASDAQ 100 is lagging a bit behind, I don’t necessarily think it’s going to collapse.

The NASDAQ 100 rallied a bit during Tuesday’s trading session as we approached the 50-day EMA, but then broke down. At the end of the day, it’s a market that always pays close attention to the 50-day EMA, so if we can get past that then it’s likely that it would put a lot of money back into the market and turn around. towards the level of 14000.. If we can get past the milestone, then it’s likely a lot of people will try to push that above the 14,000 grip.

On the downside we have a massive uptrend line and the 13,000 level that comes into play as well. If we fall below the 13000 level, it is very likely that the NASDAQ 100 will turn to the 200 day EMA, and therefore I would be a put buyer, but not someone shorting this market. . The Federal Reserve will continue to print dollars and we have many reasons to believe that it will buy assets because yields are so low, so if they turn around we are likely to see more or less a ‘buy on the bank’. type of situation “hollow”.

It is only when we drop below the 200 day EMA that I would remotely consider shorting, and at that point it would be more or less a ‘trap’ that could bring this market down. much lower. However, I don’t think it would happen very easily, so I think it’s much easier to send this market higher. The NASDAQ 100 is sensitive to risk appetite, and that will be the main driver. If we see a sudden surge in bond market yields, we might see money draining from here, but with enough time I think we will recover. If we don’t, I’ll still have my money in the S&P 500, which seems to be a bit more isolated, not to mention the Dow Jones 30 looking even more bullish in general. While the NASDAQ 100 is lagging a bit behind, I don’t necessarily think it’s going to collapse.