The NASDAQ 100 has fallen during the trading session on Wednesday as traders play “Chicken Little” with the idea of US attacks on Iran. This, too, shall pass.
The NASDAQ 100 has fallen during the trading session on Wednesday as traders play Chicken Little with the idea of US attacks on Iran. We've seen this movie multiple times, and I think this just has people buying more.
The PPI numbers came out weaker than anticipated, but again, Wall Street likes the idea of a weak economy because it means you get loose monetary policy coming out of the Federal Reserve. Speaking of the Federal Reserve, we were a bit rattled by the Department of Justice offering subpoenas for Jerome Powell, and that had people wondering whether or not something was going to structurally change.
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Market Support and Sideways Noise
In the real world, we realize that the term of Jerome Powell will be long gone before any court actions would actually be finalized. The market is sideways at the moment, and I believe it continues to be so. The 25,000 level should be an area of support.
I think buyers will be looking to take advantage of that if and when they can. A little bit of a bounce would make a certain amount of sense, but there is the possibility that we get some type of military action that rattles the markets for about 20 minutes.
Let's be honest, long gone are the days when war is thought of as a bad thing when it comes to equities, and suddenly becomes a good thing because that means there will be more profits for some of these companies. The US dollar is a bit noisy at the moment. I think that continues to be one of your major problems, but there's nothing on this chart that doesn't scream sideways noise more than anything else.
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