The Nasdaq 100 was a little bit noisy during the trading session on Wednesday as traders continue to deal with unpredictable headlines.
Nasdaq 100
The Nasdaq 100 was a little bit noisy during the trading session on Wednesday as we continue to see a lot of questions asked about the war. Furthermore, we are sitting at the 25,000 level, an area that I think if we can break above that level, then it opens up the possibility of an attempt to finally clear the 50-day EMA.
That being said, it looks like we are going to continue to see a lot of choppy behavior. If we do pull back from here, the 24,500-level underneath as a potential support level and it could be a buying area on some type of bounce. If we break down below there, then you have to look at the 200-day EMA.
Long-Term Outlook and Psychological Barriers
Ultimately, I think the Nasdaq 100 continues to be noisy more than anything else and you do have to be cautious with the overall size of your position as there is a lot of noise out there that could cause major issues. Over the longer term, I do believe that the Nasdaq 100 will take off to the upside, but it has been essentially dead money for about 6 weeks now as we're just hanging around the 25,000 level.
The 25,000 level I think just carries a lot of psychology attached to it and it should be thought of as a magnet for price. Over long term of the trading, I think it is probably only a matter of time before we do break to the 26,275 level, but I also recognize that we have a scenario where there are plenty of headlines out there that could cause major issues for the Nasdaq 100 and stock markets on the whole as the war rages on in the Middle East. Interest rates did rise a bit during the session that also would have been a little bit of negativity, but at the end of the day, I still like buying.