The Nasdaq 100 fell hard early on Thursday, as rates and headlines continue to be a major problem for equities in America, as well as other parts of the world.
NASDAQ 100
The Nasdaq 100 fell pretty significantly during the trading session on Thursday as we continue to see a lot of issues out there with interest rates rising.
We are well below the 200-day EMA, and it certainly looks like a market that I think is going to continue to struggle overall. The 23,800 level is an area that has been support and resistance in the past and I think we've got a little bit of a battle on our hands.
Pressure on Tech Stocks
But over the longer term I anticipate that we have a situation where anytime this market rallies you have to assume that it's going to run into selling sooner or later. I don't necessarily think this is a market that's going to unravel completely but it just isn't one you can trust right now.
Interest rates continue to put a lot of pressure on high-flying tech stocks and as long as that's going to be the case the Nasdaq 100 will suffer. I do believe ultimately when you look at the charts despite the fact that it has been negative for several weeks considering that we're in the midst of a war with the Americans and the Iranians shooting at each other it's actually held up fairly well.
So, I think what this comes down to is when the war stops the market probably rips higher. We'll have to wait and see how that plays out but we've seen a couple of moves that were rather impressive when we heard that peace was a possibility.
Ultimately, we're just in somewhat of a holding pattern. It is negative but I do think given enough time we will see this thing turn around and since it won't really fall apart you can't short it you just have to be very patient and wait for good news to come out of the Middle East.
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