- The Nasdaq 100 was very noisy during the month of November, as we had a lot of questions asked about the overall trend.
- That being said, I don't think anything major has happened other than a short-term pullback, which feels worse than anything else because it is a market that's been basically straight up in the air for a while.
- So, this first correction had a lot of people concerned. There are a lot of questions asked about whether or not the Federal Reserve will cut rates, and that has a major influence on technology stocks and risk appetite in the United States.
Seasonality, Support Levels, and Upside Triggers
As we go into the month of December, there is the possibility of the so-called Santa Claus rally, and I think a lot of people will be watching out for that. The biggest problem that we have with the idea of a Santa Claus rally at this point is that the market has exploded to the upside for several months. So the question then remains who's left to push the market to the upside.
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Remember, the Santa Claus rally is based on the idea that there are money managers out there who have underperformed all year and need to own the correct stocks and hopefully pick up a few percent.
That being said, I think even if we do fall from here, there is significant support at the 23,250 level. If we can take the 25,000 level to the upside and close above there on a daily candlestick, possibly even a weekly candlestick, then it's likely that the Nasdaq 100 finds itself trying to get to the 26,000 level. All things being equal, I think this is a market that will be very noisy. And although I do expect to see buyers coming into the market in December, I think it will be a lot more muted than most Decembers.
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