- The US indices are noisy on Thursday, as we have seen a lot of negative momentum.
- That being said, we are at a major support level.
The NASDAQ 100 has fallen rather hard during the trading session as we have seen some of the noise return to the market as we have been very steady for quite some time. This is a major uptrend that continues to see buy on the dip mentality.
Part of what we're seeing here is that software stocks really getting hammered on AI disruption fear. Now we see a handful of these stocks dropping like 8%, 9%, or 10%. The market will continue to see a lot of interest underneath, though. Ultimately, we’ve got a situation where the 50-day EMA so far has served its purpose as a floor.
Even if we break down below there, the market is likely to see a lot of support all the way down to the 25,000 level. Quite frankly, if you look at the chart over the last several months, we've seen a couple bars like this here and there, only to turn around and offer a buying opportunity.
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I think that's what's likely to happen here. I don't have any interest in shorting, and I do recognize that on the bounce I'm willing to have a go at this, perhaps above the 25,650 level, maybe the 25,700 level.
This is something that we probably see by the end of the day if we get any type of recovery from actual American traders. This was all first thing in the morning. With this, I think this is a situation where, given enough time, we do break out to a fresh new high, and I think that's how you have to look at this.
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