The Nasdaq 100 started out the session on Wednesday falling, but turned around to show life by the time New York got on board.
NAS100
The Nasdaq 100 initially fell on Wednesday as we continued to see a lot of nerves out there when it came to the war in the Middle East. That being said, we have turned around to show signs of strength and have broken above the 25,000 level again.
The 25,000 level has been important for a while; it’s a large round psychologically significant figure and an area that has shown a certain amount of resistance as well. If we can keep going higher, perhaps breaking above the 50-day EMA, it gives Nasdaq 100 the possibility of reaching the highs again.
Market Volatility and Opportunities to Buy the Dip
This is a market that I think will continue to be volatile; after all, there are a lot of moving pieces right now that are essentially just causing chaos. But we also have to keep in mind that the market has essentially been one that continues to see plenty of opportunities to buy on the dip.
And of course, all of your usual suspects will end up being some of the leaders given enough time. The artificial intelligence trade had been left out in the dust for a minute there. Looks like we are trying to revive that as well, so that helps also.
Ultimately, I have no interest whatsoever in trying to get too cute here. I think you have a situation where traders will look at this as a market that will ultimately try to find much higher pricing. But until we get some type of external clarity, it’s going to be very difficult for this market to break above the recent swing high at 26,275.
Over the longer term, I would be bullish, but in the meantime, we may have some serious issues with volatility that we have to contend with. I do think that the 200-day EMA continues to offer a significant amount of support as well.