NASDAQ Rallies As Traders “Buy The Dip”
Shain Vernier • 1 min read
U.S. stocks are quickly regaining March’s lost ground, led by a steep rally in the NASDAQ. At the midway point of the Wall Street session, the DJIA DOW (+293), S&P 500 SPX (+50), and NASDAQ (+315) are all deep in the green. Since yesterday’s House approval of the American Rescue Plan Act, positive sentiment has flooded the markets of risk assets.
At press time, POTUS Joe Biden is scheduled to sign the massive US$1.9 trillion COVID-19 relief bill on Friday. In addition, it’s been more than 50 days since Biden was sworn in as president; since that time, he hasn’t held a single press conference. Tonight’s prime-time address will be Biden’s first real engagement with the nation. It will be heavily produced and focussed on COVID-19 and stimulus package talking points ― no market movers are expected.
During the U.S. premarket, the weekly jobless figures were released to the public. Both Continuing and Initial Jobless Claims fell modestly week-over-week. The DOW, SPX, and NASDAQ are largely ignoring the figures as lagging U.S. employment has already been priced into the market.
NASDAQ Leads The U.S. Indices Higher
Since last March’s market meltdown, investors have stepped up and bought every dip in the NASDAQ. This is happening once again. The March E-mini NASDAQ is up significantly on the week, breaking above daily topside resistance.
For now, there is one key level on my radar for the March E-mini NASDAQ:
- Resistance(1): 62% Retracement, 13253.75
Bottom Line: If the March E-mini NASDAQ extends its bullish ways, a shorting opportunity may come into play very soon. Until elected, I’ll have sell orders in the queue from 13249.25. With an initial stop loss at 13256.25, this trade produces 56 ticks on a 1:2 risk vs reward management plan.