The Nasdaq 100 has shown itself to be rather resilient recently, and Tuesday hasn’t been any different after the initial selling pressures.
NASDAQ 100
The Nasdaq 100 has shown itself to be rather bullish during the trading session after initially selling off early on Tuesday. With that being the case, you can see that it looks like we are going to turn around and try to find the 25,000 level again.
The 25,000 level obviously is a large round psychologically significant figure and an area that I think ultimately we do break above, but I also recognize that there are a lot of concerns and questions out there as far as how the economy is going, whether or not the Fed will cut enough, and of course we have PCE inflationary numbers coming later in the week and that will capture a certain amount of attention as well.
I have no interest in shorting this market and I do think that the 200-day EMA below continues to offer a little bit of a reprieve.
The Artificial Intelligence Boom
But the question now, I think for the Nasdaq 100 more than anything else, is going to be whether or not the artificial intelligence boom needs to take a pause. We have been grinding back and forth in a range for a while now, going back to basically the middle of November, perhaps late December at the very latest, when we formed this range.
Now we have to figure out whether or not we can break out of it. As things stand right now, it does not look like we can, and therefore it makes sense that we bounce. Now that we are at the bottom of the overall range that has been so important, I think this sets up for a nice short-term trade. Whether or not we break out to new highs, well, that is a completely different question.
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