The NASDAQ 100 is bouncing after initially selling off on Tuesday.
Nasdaq 100 initially fell during trading on Tuesday as New York traders came into the office, dealing with a lot of the drama coming out of Europe. The reality is that the market is already starting to bounce, which makes perfect sense because the situation in Greenland has nothing to do with the technology companies here, at least not to any significant amount of concern.
With that being the case, the market bouncing from the crucial 25,000 level makes a lot of sense. We do have earnings coming in the next week or two, and traders will start to focus more on that than anything else. I believe that the 25,000 level makes a lot of sense as support, as it has been important a couple of times in the past.
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I do think you have to look at this as a situation where traders are going to continue to be a little bit hesitant, but also wait a bit to see whether or not momentum can pick up.
Momentum Picking Up
I think it is going to start picking up, and once it does, we will challenge the 26,000 level. If we can break above there, then the Nasdaq 100 can truly take off. A breakdown from here could test 24,600, but right now that’s not my base case scenario, especially considering that the New Yorkers came in and started buying up all the same companies again.
It shows that most people, I think, believe that eventually the Greenland situation will end up being a negotiating situation where it will work itself out. Some leaders are already calling for calm. I think the shock of President Donald Trump's tweets and announcements these days is starting to wear off on the market and isn’t as damaging as it once was.
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