- The Nasdaq 100 plunged initially during the trading session on Monday, but it does look like we are trying to stabilize.
- I've been watching this market, and at this point, I think if we can recapture the 21,000 level, we might be on to something.
- That might be a sign that we are going to go higher.
That being said, keep in mind, there's some inflation numbers coming out this week in the United States, and that will have a major influence on where we go next, with the most obvious one being CPI on Wednesday, we will get PPI on Tuesday, but that one tends to be a little less drastic. If for any reason the CPI numbers are lower than anticipated, then that probably gets people excited, and we start buying stocks. Or for that matter, maybe if they're just as expected at 0.2%, we'll have to wait and see, but this is all about yields in the bond market. And if those yields can drop, that will help the NASDAQ 100.
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What Proves the Bounce?
21,000 being recaptured on a daily close would be a very bullish sign. And at that point, I think you probably just would continue the longer term trend to the upside. On the other hand, if we break down below here, then the 20,000 level will be more likely than not targeted as it was previously support and resistance. And now we have the 200 day EMA racing towards that area to offer support as well. So, with that being said, I think you have to look at this as a market that you're looking to buy dips in. You just have to see the bounce in order to start following the potential momentum that could reenter the NASDAQ 100 as it is one of the favorite indices of traders around the world.
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