The NASDAQ 100 jumped on Friday, as we got word that the Iranians are keeping the Strait of Hormuz open as long as the ceasefire exists.
NASDAQ 100
The NASDAQ 100 is ripping to the upside on Friday. The NASDAQ 100 has rallied pretty significantly during the trading session here on Friday as we continue what can only be called an overextended move. You can perhaps look at this through the realm of Bollinger Bands, and you see that we are definitely stretched. We’re walking to the top of the range.
While I am very positive on the NASDAQ 100, I am a little bit leery about getting overly extended here. I think a pullback to the 26,275 level could be very interesting because it was the previous high, so the question of course is, will that offer support? The other scenario is sideways action because quite frankly to chase it here is just being reckless.
Technical Yields and Market Sentiment
That being said, the 10-year yield is your guide at the moment. It is well below the 4.30 level, an area that seemed to have caused issues for risk appetite until recently, and as long as we don’t pop back above that level, I think in general you have to be thinking bullish behavior.
Again though, we have just jumped almost 4,000 points over the last couple of weeks and that’s a pretty big move. I understand that a lot of this comes down to peace being a very real possibility in the Middle East, but you do not want to chase euphoric moves. You want the froth to come down a little bit and pick up cheap contracts. Buying into the weekend while maybe over the long term won’t be the wrong move, in the next couple of days could be very...