NASDAQ 100 Signal Today - 23/12: Surges Friday (Chart)

(MENAFN- Daily Forex) Potential Signal:

I am a buyer of this index, with absolutely no interest whatsoever of shorting it. A stop loss would be tucked in just below the 21,000 level, and I'd be looking to take advantage of the momentum. I would move to break even once we cleared the 22,000 level, and perhaps even add 10% to the original position size.

• During my daily analysis of the financial markets, the NASDAQ 100 has captured my attention more than just about anything else, because of the violent moves that it has made.
• The NASDAQ 100 initially broke below the 50 Day EMA to reach toward the 20,700 level, but then turned around quite viciously to take off to the upside.
• There are a lot of reasons why this may have happened, but the most obvious one is the fact that it was a major options expiration session, and the options traders out there probably had to come in and pick up the market in order to avoid taking massive losses in the options market after the ridiculous moves on Wednesday.

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The technical analysis for the NASDAQ 100 has been strong for some time, and I think that will continue to be the case. The 50 Day EMA has obviously offered technical support, just as the 21,000 level has. Because of this, think you have a situation where buyers are going to come in and chase this market up for a few days, perhaps pushing it to the all-time highs before it is all said and done. Don't get me wrong, I recognize that liquidity is going to be a major issue over the next couple of weeks, but that might be the point here, the just will be enough people out there to push the market down to keep it from rallying. This has been a very impressive move, and I think we will continue to see more of this behavior.

I don't have any interest in getting short anytime soon. Yes, I recognize that the market is a little overdone at the end of the Friday session, but quite frankly was overdone on Wednesday. That was all about Jerome Powell not understanding his influence on the market. Or perhaps he does know his influence on the market, but clearly Wall Street has chosen to ignore him again as he has been left wanting after his press conference.

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