NASDAQ has found support at 1170-1150 area and pushed higher. I personally believe, if there is any strength next week, it will come from tech sector.
As for the broader market action, I am not so sure…The problem is, that at first it looked like a potential Wyckoff formation (look more about it in Education section). Now, though I am not so sure, as last week’s price action was too choppy, no follow through. It starts looking more like a rising wedge.
Still the market was strong enough to find support at 850 level and crawl all the way back despite all the news. Will it rice further? Can’t tell you…What I am almost 90% sure about is that the market will tank hard in January. But from what levels? That’s the main question. Would really like to see it reach ~950 or at least ~920 and price momentum to stall.
First it should breach 900-905 on high volume and close above this mark. So that’s one possibility. Another one, is that the price reverses before year’s end. In this case I will be looking for it to fall below 850-845.
Here is also a list of things to consider next week:
- Stocks tend to rise at the end of December (though it wasn’t a usual year)
- Options Max-Pain (see my page about free options tools) is 99.00, which is bullish
- Despite negative news on Friday, stocks closed in positive territory
- US FOMC Interest Rate Decision
Profitable trading!
