- The NASDAQ 100 isn’t bringing anybody any holiday cheer, as we are now below the 10,800 level.
- This is a market that is going to continue to suffer at the hands of a tight Federal Reserve, but we also have to keep in mind that volume is probably just about nonexistent at this point.
- Support does extend all the way down to the 10,400 level, so I don’t necessarily expect much more to the downside, at least in the short term.
Rallies at this point will probably be sold into, so I anticipate that letting the market bounce and taking advantage of the runway that it will give you is probably going to be the best way going forward. Between now and New Year’s Day, the market is probably going to be very quiet, so I’m not looking for much, and of course, volume is probably going to be a major issue. With that, I’m looking at a situation where I probably wouldn’t put too much pressure on the desired trait, and quite frankly I don’t necessarily think that the market is going to be one that is worth messing with, but if we let it bounce, that might make for a tradable event.
Market Expected to be Very Quiet
On the other hand, if we were to break down below the 10,400 level, then we could see the market break down to the 10,000 level, which obviously has a lot of psychology attached to it, and because of could open the market to even deeper selling pressure. As far as buying is concerned, I just don’t have an argument to do that in this environment, with all the interest rates around the world behind, and of course technology being sensitive to it.
Unless we can break above the 12,000 level, it’s difficult to imagine a scenario where I would get bullish. I think we have much further to go to the downside, although it’s not happening in one move, it never does. If we break down below the 10,000 level, I don’t see the market holding up very well, and I think it will be the bottom falling out. Between now and the end of the holiday season though, I’m expecting a very quiet situation in this market as we kill time.
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