The Nasdaq 100 has been very volatile during trading on Monday despite the fact that the markets are watching interest rates rise overall.
NASDAQ 100
The Nasdaq 100 has been very volatile during trading on Monday as we continue to see a lot of different things moving at the same time. The first thing of course will be the fact that the interest rates in America continue to climb and furthermore, we also have to keep in mind that Palantir has earnings call after hours that could move the markets further.3
Nonetheless, this is a market that is a little bit stretched and I think the overextension of the market continues to be a bit of a major problem. So, with this, I believe you have a scenario where a pullback probably helps quite drastically.
Market Sentiment and Support Levels
The market will continue to see a lot of buyers of dips because, quite frankly, it's obvious that we have of course turned very bullish over the last several weeks. And now the question is, where do we think we will find plenty of support? I suspect the 27,000 level would be somewhat ideal.
The 27,000 level is an area that has already proven itself a couple of times, so it might be worth watching regardless. With this, I like the idea of finding a little bit of value in the Nasdaq 100 before I put a bunch of money into the market.
The market breaking down below the 27,000 level could open up a move down to the 26,400 level, but I don't necessarily believe that is the be-all end-all of the range. So, with this, I believe that it is a market that you can only get long of and really at this point pullbacks should be thought of more or less as an opportunity. That being said, I don't like the idea of chasing the Nasdaq 100 all the way up here if I can avoid it. Interest rates rising the way they are will eventually cause problems.