- The NASDAQ 100 Index has been all over the place during the trading session on Tuesday as we continue to see a lot of concern.
- The market is essentially forming a little bit of a bullish flag, but there isn’t much of a pole.
- Ultimately, this is a market that will continue to be very noisy, as we have seen over the last couple weeks.
Market Missing Momentum to the Upside
It’s worth noting that the earnings season has been a bit messy, and that will probably continue to be a bit of an issue. Because of this, I think you have to look at this through the prism of a range bound type of trading environment, and you will have to continue look at this for the latest noise that comes out of the market and therefore what people will be doing for the next 15 minutes. Unfortunately, that’s basically how this market has traded. Furthermore, it’s probably worth noting that the latest scheme is to try to run up the zero day to expiration options, meaning that there’s a lot of manipulation going on at the moment. Underneath, we have the 200-Day EMA coming into the picture, and it could offer a certain amount of support.
Speaking of that 200-Day moving average, if we were to break down below it it’s likely that we would see a significant move lower. The 50-Day EMA underneath continues to be an area where a lot of people will be paying close attention to it, and therefore if we were to break down below there, then it’s likely that we could go to the 10,650 level. That obviously would be a major selloff, but the one thing that I see is that every time you do try to rally, there are long wicks on candlesticks and therefore it’s obvious to me that there is a lot of selling pressure above there, and therefore it’s likely that we could continue to see that offer a little bit of a brick wall. If we can get through there though, that would be a hugely bullish sign, but it’s obvious that we do not have the momentum quite yet. The 13,000 level could be an area of significant targeting, but we would need to see a Herculean effort to make that happen.
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