Dow Jones 30 and NASDAQ 100 both rally on Thursday

The US stock markets have rallied significantly during the Thursday trading session, in a strong and impulsive move. The market should continue to reach towards higher levels, as we have recently seen a large basing pattern, and of course a significant bounce from the uptrend line. · FX Empire

Christopher Lewis

Updated Thu, May 10, 2018, 10:37 PM

Dow Jones 30

The Dow Jones 30 exploded to the upside during the trading session on Thursday, breaking towards the 24,700 level above. I think that 24,500 underneath is going to offer short-term support, as we eventually break out above there. I think that the market is going to try to go to the 25,000 handle over the longer term, but we could get a bit of volatility occasionally. However, I think that the market will have its occasional pullback that offers value, and that’s how you should be looking at this market, one that you buy when it gets a bit on the cheap side.

NASDAQ 100

The NASDAQ 100 has broken above the psychologically important 6900 level, opening the door way to the 6950 level, and then the 7000 handle which I think is much more important. I look at short-term pullbacks as buying opportunities as tech stocks will continue to rally and of course the overall attitude of the stock market is positive for the last several sessions. I have no interest in shorting this market, the NASDAQ 100 looks ready to lead the way for the other US indices as it broke to a fresh, new high earlier than the other ones. Longer-term, I anticipate that 7000 will be broken as well, and that we will continue to find plenty of reasons to add to a core position on the way up. That being said it looks like we are ready to find plenty of reasons to rally.