The NASDAQ is rallying for the second day in a row, as we continue to see a lot of moves based on bond yields and headlines.
NASDAQ 100
The NASDAQ 100 rallied rather significantly during the trading session for the 2nd day in a row on Wednesday, testing now the 200-day EMA. This is where things get real and it'll be interesting to see if we can continue.
I do think it's probably a little difficult to have that happen and a pullback would make a certain amount of sense. I wouldn't chase it here. What I'm looking for is an opportunity to buy the NASDAQ on a dip and some type of bounce.
Monitoring Interest Rates and Global Volatility
That being said, the 23,800 level is an area that we could possibly look to for support. But if the market then continues from here, the 25,000 level would be the next target I think eventually. I think the NASDAQ 100 will continue to move to the beat of the interest rate markets, which of course are being moved by the war in Iran.
If we do drop from here, the market is certainly supported at the 22,800 level although I don't know that we get down there unless the war escalates again. This is a market that has had a nice 10% correction, and we are correcting quite nicely from there.
Now our job as traders is to find some type of value. Once you find that value it's worth taking advantage of, but keep in mind your position size needs to be relatively small due to the fact that the volatility will continue to be a major issue going forward and therefore position sizing will be crucial in this type of environment. This is a market that you should be trading in smaller sizes at the moment.