Short-term pullbacks I think will continue to attract buyers, but we have a lot of potential bumps along the way, as headlines continue to be an issue.
NASDAQ 100
The NASDAQ 100 initially fell during early trading on Tuesday, only to turn around and show signs of life as markets continue to see a lot of volatility. At this point, I think a lot of people out there are banking on the idea that perhaps the Americans may slow the war down or perhaps even walk away from it given enough time.
After all, Donald Trump has said that the war was very close to being finished and if that’s the case it takes one more thing off the table, at least in theory. We'll have to wait and see whether or not that's actually a real thing and quite frankly, I think this is a situation where traders will be held hostage on the whims of the latest headlines coming out of Iran, as well as other places.
Technical Outlook and Potential Targets
Short-term pullbacks I do believe end up offering buying opportunities. I think that's been the same key here for a while with the 200-day EMA offering a bit of a floor. It's worth noting that we did break above the 25,000 level, but if we can continue to go higher, perhaps breaking above the 25,500 level, then maybe the market could go looking to the 26,250 level.
All things being equal, this is a market that is likely to be very noisy and choppy behavior. Short-term pullbacks will continue to be bought into by value hunters, but as things stand right now, unfortunately, we have to be very cautious because a random headline could send the markets flying in one direction or the other.