The Nasdaq 100 continues to see buying pressure on Tuesday, despite the fact that it seems overextended. With this, the path of least resistance is still higher, but pullback could and should be expected.
NASDAQ 100
The Nasdaq 100 has taken off pretty significantly to the upside during the Tuesday session as we are just basically ignoring gravity at this point. This market continues to just go higher no matter what, even with everything that is going on in the world currently.
It's worth noting that the 10-year yield has drifted a little bit lower during this session and this has helped the Nasdaq 100 or at least it hasn't gotten in its way. Nonetheless, there is an area right below at 27,000 that I think is going to continue to be your floor.
The path of least resistance in the Nasdaq 100 clearly remains upward and I think a lot of people are going to be thinking buying on the dips is the way forward. That being said, the 10-year treasury yield hitting 4.5% could be a major problem.
BULLISH ATTITUDE AND MARKET SENTIMENT
It hasn't yet and if it starts to pull back a bit from here, that will only add to the bullish attitude of the Nasdaq 100. Clearly you cannot get short of this market, not without some type of major shift in sentiment and perhaps even major shift in the overall risk appetite of traders around the world.
This has been an explosive move to the upside that shows no real hints of slowing down. A lot of this is artificial intelligence driven, but there are other factors as well. We are in the middle of earnings season, so that of course helps also. I have no interest in shorting and I think at the moment 27,000 is probably the floor in this index.