Dow Jones 30
The Dow Jones 30 initially fell during the week but turned around to break above the 23,500 level. By doing so, looks likely to continue the uptrend, and I think that the market would reach towards the 24,000 level. I think that pullbacks are necessary to take advantage of value, which we are getting a bit away from at this point. I would be hesitant to go long of this market, as I think the market should continue to be bullish, but I think buying at the highs here is a very dangerous move. I would love to see a pullback to at least 23,000 or so, if not 22,000 after that. The US dollar is strengthening, so I’m hoping that the strengthening US dollar could make this market take a bit of a breather.
Dow Jones 31 and NASDAQ Index Video 06.11.17
NASDAQ 100
The NASDAQ 100 initially fell during the week, reaching towards the 6200 level. Ultimately, this market should continue to go much higher, but we are more than likely needing to see some type a pullback to put together some value. I look at pullbacks as an opportunity to pick up the NASDAQ 100 “on the cheap.”
I still believe that the 6000-level underneath is the “floor” in the break out to the upside, and the 6000 level was previous resistance. I do like the NASDAQ 100 longer-term, but I recognize that the stock markets have gotten ahead of themselves, and a pullback is not only necessary, but healthy at this point. I think that the market continues to be one that longer-term traders can hang onto, but I would not do so with a huge position. Perhaps buying on the dips and adding slowly would be the best way to go about what I think is a strong yet overbought market.
This article was originally posted on FX Empire