The NASDAQ 100 continues to drop a bit during the Thursday session as we continue to see a lot of noise in general. This is a market that I think continues to see a lot of volatility, but if the interest rates around the world continue to climb, it’s going to be difficult for technological companies to continue to attract funding.
With this being the case, the market is going to continue to see a lot of back-and-forths, but overall, this is still a negative trend, and I don’t see how those changes anytime soon with the Federal Reserve tightening monetary policy the way it is, it, of course, a lot of fear out there when it comes to growth. I believe that we have a situation where we will have to pay close attention to the idea of what’s going on during the day on Friday because we have such a major amount of stress out there that where people are willing to be positioned says a lot.
NASDAQ 100 Expected to Underperform Other Indices
- If we do get a massive rally on Friday, that could lead to a bigger turnaround.
- This is because people are stating that they are clearly comfortable being long of the market heading into the weekend, which takes quite a bit of confidence.
- Ultimately, this is a situation where it’s going to take a lot to have people hang onto a position, because every time they have tried to buy stocks, they have taken a bit of a hit.
I think the NASDAQ 100 will underperform a lot of the other indices, so having said that the market is likely to continue to drop ahead of the others. I believe this is a situation where you need to wait for some type of exhaustion after a short-term rally so we can start selling off yet again. The 50-Day EMA sits near the 12,200 level and is dropping rather significantly. Ultimately, this is a market that I have no interest whatsoever in trying to buy this market, since the economy just simply will not support these high-risk types of stocks, and therefore it’s likely that we will continue to see people taking advantage of strength so that they can continue to short.
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