Potential signal:
- I am a buyer here, with a stop at 28,300 and a target of 29,500.
- The Nasdaq 100 fell early on Thursday, as we continue to see the same pattern play out in the US stock markets.
Nasdaq 100
The Nasdaq 100 plunged early during the trading session on Thursday as we are now testing the crucial 28,500 level. The 28,500 level is an area that has been support multiple times, and therefore we need to pay close attention to that. The 50-day EMA continues to offer resistance and did, in fact, during the early part of the session. If the market were to break down from here, then I'll be watching the 28,200 level as it has provided a little bit of a buffer for those looking to buy the Nasdaq 100.
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Earnings Season and Yield Pressure Test Key Support
It is worth noting that the Nasdaq 100 has faced a bit of pressure due to rising interest rates during the session, but it's also worth noting that we have seen weakness in the early part of the session several days in a row, but Americans later stepping in to buy the index. We don't know what happens today, but the reality is the market continues to be well-defended, and it looks like it wants to go sideways after shooting straight up in the air.
This consolidation makes sense. We have to work off some of the excess froth, and in that environment, I do believe that it is probably only a matter of time before we have to make a bigger decision. So far, it looks like we are trying to hang on to the uptrend line, and the uptrend, of course, is something that's been in effect since April.
These explosive moves quite often will put the market into a sideways range eventually, and it's worth noting that, generally speaking, during the summer, stock markets do tend to be a bit quieter. With the concerns in the Middle East and the fact that we are starting earnings season, this could lead to a bumpy road, but right now, it still looks like we are very much in the same range we have been in for several months.
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