The Nasdaq 100 has a tough month for February, as traders have been dealing with a whole list of external issues, and the earnings season. However, in the month of March, its likely we will continue to see resilience.
Nasdaq 100
The Nasdaq 100 has been pretty volatile during the month of February but the one thing that keeps showing up as far as I can see is the desire for buyers to pick up the market and find reasons to get long. This is a market that I think continues to be very noisy mainly due to a whole plethora of issues.
For example, earnings season of course has been going on and that is obviously a major factor in what happens, but we also have to keep in mind that there are a lot of questions about what the tariff situation is going to be. The Supreme Court voted against and knocked down the idea of tariffs in the United States, which initially had people buying stocks, but since then, the president switched to plan B, which was to simply use other vehicles to do the same thing.
Market Consolidation and Technical Outlook
There are a lot of questions about where the tariff war goes from here. Between that and earnings season, February has been a very difficult market to trade for the Nasdaq. We have been spinning our wheels, but when you look at a weekly chart you can see that we are consolidating after a huge move during the previous year.
There is nothing out of the normal here and I think that suggests that and the idea that we can't seem to break down significantly, seems to suggest that there are plenty of buyers underneath willing to get involved in this market. I do believe that the month of March is probably positive. The question for me is whether or not we can finally break above 26,250.