August 14, 2022
  • August 14, 2022

The index goes back to the large handle

By on June 16, 2021 0

The market is expected to continue on the general trend, which has been on the rise for some time.

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The NASDAQ 100 fell slightly during Tuesday’s trading session to show signs of exhaustion. Ultimately, I suspect that the most important thing here is that traders are trying to stay flat ahead of the Federal Reserve’s announcement at the end of Wednesday’s session, as monetary policy will obviously have a huge effect on what will happen next. . This being the case, the market is probably looking for a reason to be long with enough time, but we’ll likely see buyers based on value.

The 50-day EMA stands at 13,607 and is rising. Ultimately, the 50-day EMA is somewhat favorable, but only from a directional point of view. As you can see the market pullback wiped out the gains from the previous session, so you can safely say that we just formed a “48 hour shooting star” but like I said it’s more about or fewer market participants. trying to deviate from the Fed announcement.

At this point, I think the only way this market really collapses for a bigger move is if the Federal Reserve suddenly suggests they are going to decline, which I wouldn’t expect to see during the session, d ‘especially since retail sales were such a disaster earlier today. Because of this, the market should continue on the general trend, which has been on the rise for some time. In the short term, I think the market has a lot of support below, not only at the 50 day EMA level, but also at the 13,500 level, maybe even at the 13,000 level.

If we were to fall below the 13,000 level, I might consider buying options at this point, but I wouldn’t be a seller right away due to the Federal Reserve letting things get out of hand. If you buy a put, you have the ability to control your overall risk, as a few words from the Fed could kick this market right away. Keep in mind that the Fed steps in to take over Wall Street when needed, and I predict that would be the case for any type of significant outage.

NASDAQ 100 Index