NASDAQ Fundamentals - Weekly Outlook: 2014, July 20 - 27

The NASDAQ initially fell during the course of the week, but found enough support at the 4350 level to turn things back around and have a nice bounce. This bounce cents the market high enough to form a significant hammer, which happens to be on the aforementioned 4350 level. This level was one significant resistance back during the month of March, and now we have essentially “broken out, and retested the resistance for support.” This is basic technical analysis, and as a result we believe that the NASDAQ might be one of the most bullish markets we follow at the moment.

It isn’t that you can’t lose money buying this market, it’s just that the odds favor going long. This market looks like one that’s quite healthy, and as a result we feel that the move above 4500 should be essentially when the floodgates open, bring in the buyers in from everywhere. It will more than likely coincide with a break of the 2000 level in the S&P 500 as well, so that should just have risk assets in general going quite well. Remember, the NASDAQ is typically time to global growth as there’s a lot of technology involved in the index, and most of the technological companies on the NASDAQ tend to do a lot of business in places like Europe and Asia. With this, it is one of the better “risk on” financial assets that we track level.