- The Nasdaq 100 has gone back and forth during trading early on Thursday as we continue to try to find some type of footing for this market to turn things around.
- Keep in mind that the Nasdaq 100 is currently looking at the 17,000 level underneath as a major support level, and of course, is trying to find its way through earnings season like every other index in the United States.
- At this point, it seems as if the stock markets in the US are in the midst of churning under the surface, as traders rotate their allocations.
We have recently seen a fairly significant sell off for a total of about 8%, slamming into that 17,000 level only to turn around and bounce. All things being equal, I think that the Nasdaq 100 market will continue to chop around between 17,000 underneath and the 50 day EMA currently sitting right around 17,800 above. In general, I am inclined to be a buyer and not a seller.
Pullbacks Should Be Key
So, what I'm looking for are short term pullbacks that show momentum after a bounce. This is a market that is very difficult to fight because it's not equally weighted. So as long as the big stocks do okay so will the index. If we were to break down below the 17,000 level underneath, then I think we go looking toward the 200 day EMA, which is closer to the 16,450 level.
On a move to the upside, if we can clear the 50 day EMA, then it's likely that the Nasdaq 100 will go looking to reach the 18,400 level again, an area that recently had caused quite a bit of pressure. Either way, we are still very much in an uptrend, so I don't read too much into the pullback yet, other than it might have just been something that was desperately needed for a while, as we had essentially gone straight up in the air. In other words, gravity still exists, and people are trying to come to terms with hit in this market.
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