Bulls punched back Wednesday as executives at another big tech company pointed to robust spending from large corporate customers, states Jon Markman, editor of Strategic Advantage.

The Nasdaq 100 closed at 18,018, a gain of 0.7%. The rally for the NDX is important because bulls managed to hold the key support level at 17,850. Bears want investors to believe the rally in 2023 and 2024 is built on faulty ground. The idea, as silly as it seems, is that the artificial intelligence storyline is mostly hype and that corporations remain spendthrift as leaders worry about the global economy. 

Executives at CrowdStrike (CRWD) became the latest in a long line of firms to squash that narrative. After the close on Tuesday, the firm posted record fourth-quarter financial results, and execs noted that there are no signs of corporate spending fatigue. Businesses are dealing with rising cyberattacks.

None of this is a big surprise. Cybersecurity is now a top priority in the corporate and public sectors, according to a January research report at Jefferies. The Securities and Exchange Commission mandated in January that all firms must file an 8-K document following any material cyber breach. Moreover, all annual reports must contain a cybersecurity plan, and the company's board of directors must describe management’s expertise in assessing cyber risks. These new rules are creating a big tailwind for cybersecurity firms like CrowdStrike. 

Meanwhile, professional money managers continue to pile into stocks that have performed strongest. This behavior is also not surprising. The end of the quarter is quickly approaching. Pros want to dress their portfolios with the best stock market stories. Behind the scenes, they are racing to catch up. This dynamic should play out through the end of the quarter. 

There is support for the NDX at 17,850, the rising 20-day moving average. There is resistance at 18,218, then 18,859.

Double Trouble: Buy the ProShares Ultra QQQ (QLD) exchange-traded fund at $85.30 or less. 

Once filled, place an order to sell the entire position at $93.30. 

Place an initial stop at $79.33.

Learn more about Jon Markman here...