Nasdaq 100 has pulled back slightly late in April, and this could lead to the beginning of May being somewhat soft.
NAS100
Nasdaq 100 has pulled back slightly at the very end of April, but at this point in time it is a market that had been so strong during the month of April. But now it looks as if we are in fact likely to see a bit of a pullback during the month of May and as we had just gotten too far ahead of ourselves, I think we have a situation where the pullback probably attracts a lot of attention and people will more likely than not open up the possibility of value hunting.
Keep an eye on the interest rates in the United States because the 10-year yield breaking above the 4.30% level attracts a lot of attention and it does put some downward pressure on stocks. A market that sees higher interest rates could very well fall apart quickly especially as I am looking at the interest rates really jump at the end of the month.
Support Levels and the Artificial Intelligence Trade
The 25,000 level should be an area of significant support and I think that is a situation where traders will probably look to market memory to turn things around. The 26,275 level is also an area that is previous resistance so I think that also could offer support.
All things being equal, one of the things that we really need to pay close attention to is the artificial intelligence trade as it looks like it could be falling apart a little bit towards the end of the month as Sam Altman from OpenAI has said the quiet part out loud, the data center spending is unsustainable and that of course has a major influence on how AI develops which has a major influence on the Nasdaq 100. I think it's a simple matter of we just got too far ahead of ourselves and the interest rate market will maybe make us pull back a bit before finding buyers.