The NASDAQ 100 has seen a lot of volatility on Monday, as traders reacted to the ceasefire and lack of deal being signed.
NASDAQ 100
The NASDAQ 100 has been a pretty crazy place to visit during the session on Monday as it initially collapsed in what would have been Asian trading. Asia and Europe typically get the NASDAQ wrong, and it looks like that was the case again during the session.
With that being said, New York has driven the NASDAQ 100 higher as reports are coming out that despite the fact that there was no actual concrete agreement made in Islamabad over the weekend, the reality is the two sides in the war are still talking. And as long as there's hope, there'll be buyers.
Furthermore, it's worth noting that the 10-year yield is sitting right around the crucial 4.3% level and if we can drop below there, that would add more fuel to the fire for an upside rally. It certainly looks to me like the buyers have made a pretty big statement during the session and I would not bet against them.
Market Sensitivity to Yields and Interest Rates
That's not to say that I want to jump into the market with a huge amount of money and start risking half of my account on a trade, I'm just saying simply that this is a market that I think will continue to attract inflows over time. Short-term pullbacks could and should be potential buying opportunities, but we'll just have to wait and see how that plays out.
After all, this market is one that is extraordinarily sensitive to interest rates and risk appetite on the whole and that's something that really shouldn't be forgotten here. I do think if we can clear the 25,450 level, the NASDAQ 100 is going to be racing towards the recent highs. On a pullback, I would look for the 50-day EMA to be supported.
Potential signal: I am buying the NASDAQ 100 on a break above 25,400 with a stop at 25,000 and a target of the 26,250 level.