The Nasdaq 100 has fallen significantly at the open in Asian and European trading, but as we have seen for some time, the Americans turn things around when New York opens.
NAS100
The Nasdaq 100 fell significantly during the course of the early hours on Monday, but let's keep things honest here: the reality is that most of the sales occurred in Asia and Europe.
Ultimately, we did break down below the 200-day EMA, only to turn things around as risk appetite has come back into the market. The resilience of the US stock market is something that you should be paying attention to very closely because, quite frankly, there's been a multitude of reasons why traders would be quick to short the market, but something is keeping it up.
The 25,000 Level is the Gateway to Higher Pricing
And if that's going to be the case, then I think it just reiterates how important the 200-day EMA is support, and the 25,000 level above is the gateway to much higher pricing. If we can clear that, then it could open up a move to the 25,500-level followed by the 26,275 level.
If traders were to turn around and send this market below the crucial 23,800 level, then the Nasdaq 100 could very well drop. All things being equal, we are still very much in a trading range, and I do think that ultimately, we resolve to the upside.
That will probably be exacerbated by any good news coming out of the conflict with the Iranian military. But regardless, we also have to keep in mind that there are a lot of noisy headlines out there that, quite frankly, I think just have people not knowing what to do. All it would take is a bit of good news to turn things around and continue the longer-term uptrend.
Potential signal: I am a buyer of NAS100 at 25,000 above. I would have a stop loss at the 24,500 level, and a target of 26,100 above.