The NASDAQ 100 has fallen a rather significantly during the trading session on Tuesday as we are starting to see a lot of fear out there, as global growth situation concerns continue to be a major problem. We broke down below the bottom of the hammer from the previous session and even broke down below the uptrend line at one point. However, we have recovered ever so slightly to break back towards it, so I do not necessarily think that the NASDAQ 100 is going to fall apart. Nonetheless, we are shortly just below the all-time high, so I think it does make a certain amount of sense that the market may get a bit of a pullback. Quite frankly, we have seen a lot of people talk about a potential pullback for a while, so in a sense I feel like it has been coming.
We do have concerns when it comes to global growth, which means that we go looking at global growth stocks as they will be negatively impacted. This of course means that the NASDAQ 100 will probably get hammered in that scenario. Nonetheless, I think that the 50 day EMA underneath will offer support as well, then of course the 14,500 comes into the picture also. After that, then we have the 14,000 level underneath, which is a large, round, psychologically significant figure.
The market basically opened up and started selling right away. In other words, this is a very negative candlestick, and it suggests that we are going to continue to see downward pressure, or at best probably some sideways action. Remember, the Federal Reserve does whatever he can to keep the market afloat, and I think that will continue to be the case going forward. The overall attitude of the markets will continue to be somewhat cautious, as we have the Delta Covid variant out there, and we are starting to see Chinese economic numbers drift lower. In other words, we are starting to see serious problems, and it is possible that we could see a bit of a “knock on effect” over here as so many of the tech companies tend to follow Asian indices as well, especially South Korea. At this point, although we did bounce ever so slightly, based upon the price action on Tuesday I am not quick to get long of this market.
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