The NASDAQ 100 index continues to see selling in the European and Asian overnight sessions, but once the Americans are left to their own devices, the market shows resilience again.
NASDAQ 100
The NASDAQ 100 fell rather significantly to kick off the trading session but later in the day we started to see a little bit of a bounce. Whether or not we can hang on to gains remains to be seen but it is interesting that the market continues to fight massive breakdowns and therefore holds the 200-day EMA as support.
If we were to break down below there it could open up a drop to the 23,800 level but NASDAQ seems to be fighting that type of move. Sometimes, the markets are all about what they won’t do, and not so much as what they do.
Technical Resistance and Market Resilience
The 25,000 level above continues to be a major barrier and if we can take that out then I think it would be a very bullish turn of events in general. Ultimately, I have no interest whatsoever in trying to short this market as things stand right now although clearly there are a lot of risks out there. This will continue to be a major problem out there with the gauging of risk appetite.
With the headline risk being what they are I’d be very cautious about our major swings being a way to really hurt yourself if you have too big of a position on but a reasonable position might be doable and all things being equal I think we continue to see plenty of values hunters out there trying to take advantage of cheap stocks when they occur. Despite all of the chaos going on right now it's been rather impressive just how resilient the NASDAQ 100 has been.