- The NASDAQ 100 went back and forth early during the trading session on Thursday.
- And at this point in time, I think it's likely that we will continue to see a lot of noisy behavior and I do think that eventually we find buyers coming back into the market to pick up value.
- After all, this has been a huge run higher, so a little bit of a correction makes quite a bit of sense.
Keep a cool head
I would not get overly excited about what we've seen recently. It's just simply a situation where we had gotten overdone. Semiconductors really got beat up on Wednesday and we are seeing a little bit of follow through here but at this juncture it's likely that sooner or later people will jump back into the artificial intelligence type of bullishness.
So, with that being the case, I think this is a market that I think sooner or later will find buyers jumping in to take advantage of value. If we can clear the high of the Wednesday session, we would then test the 50 day EMA and perhaps reach the 18,500 level. In general, this is a market that I have no interest in shorting because it is not an equal weighted index. I think a lot of people forget that and realize that it's an ETF of about five or seven stocks. And that's all. With that being the case, I'm looking for signs of a bounce to take advantage of.
All of this being said, keep in mind that there are a lot of crosswinds at the moment that has volatility peaking a bit. Quite frankly, the market had gotten far ahead of itself, so I do believe this is a healthy correction, but obviously there are a lot of concerns when it comes to conflict in the Middle East, the Federal Reserve and its interest rate policy, and of course whether or not there are cracks appearing in the artificial intelligence story. Because of this, I think you will more likely than not continue to see a lot of back and forth, but at the end of the day I believe the NASDAQ 100 will remain in an uptrend longer term.
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