The NASDAQ 100 tried to rally early on Tuesday, as we are looking like a market that is trying to find out if the 30,000 level is going to offer support.
NASDAQ 100
The NASDAQ 100 did try to rally a bit during the trading session on Tuesday but gave back gains to really start to sell off despite the fact that interest rates were dropping.
It was an interesting day. It's almost like somebody somewhere knows something and that's generally the case. So, the question now is, what are they worried about? Maybe it's some of the conflicting headlines in the Middle East? While there is a certain amount of optimism coming from the Middle East, the reality is that we also need to pay attention to the fact that there's also concerns about whether or not Israel will stop attacking Hezbollah because the Iranians have now made that a red line. They will not sign the peace agreement if that doesn't end.
Top Regulated Brokers
So, there-in lies the problem. There are a lot of moving pieces right now and as long as that's the case, I think there's a little bit of hesitation.
Geopolitical Risks and Key Support Levels
Furthermore, when you look at this, it's obvious that the market is trying to test the 30,000 level. But if we break down below there, then we need to see what happens at the 29,700 level, which is basically where the gap on Monday started. If we stay above there or bounce from there, it could be a good sign that we're going higher.
The 30,750 level, I think, is your target once we get that bounce, but we need the price action to follow what's been going on in the interest rate world. Ultimately, I am bullish, but we're a little stretched. This might just be something that needs to happen in order to attract new traders.
Ready to trade our stock market analysis? Here’s a list of some of the best CFD trading brokers to check out.