- The Nasdaq 100 fell rather hard during the early hours on Friday as the Israelis attacked the Iranians and of course you can expect a lot of people ran for cover.
Therefore, the market slammed into the 17,000 area but at this point it looks like the market is going to continue to look at the 17,000 level as an area of interest as a potential area of support and buying pressure so I’m going to be paying close attention to this level heading into the close if we can bounce from here then I think we have a real potential going back to the 50-day EMA that being said, the biggest concern that you have at this point is that we are heading into the weekend and you just don't know how, if, when, or what the Iranians are going to do. So, with that being the case, it's difficult to hang on to a risk on type of position for the next 48 hours as you wait to see what happens. Because of this, I do expect a very volatile close, but nonetheless, we are still on an uptrend.
Long-Term Still Intact
And unless the Middle Eastern conflict really starts to accelerate, I think at this point we are getting close to the idea of finding enough value to turn things around and start going long. After all, this has been a rather short timeframe to pull back the way we have. But keep in mind, we've been somewhat straight up in the air for a while too. So, it all kind of works itself out. I'm a buyer, I'm just waiting to see whether or not we take off on Monday morning in order to get long.
I think it is likely that sooner or later we will be able to look at this like an opportunity as the NASDAQ 100 “went on sale.” Keep in mind that the earnings season will of course cause a lot of noise, but also could cause a lot of opportunities to present themselves. As long as the geopolitics can cool off, we should be ok.
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