The NASDAQ 100 fell pretty significantly during the early part of the trading session on Friday to test the 29,000 level.
The 29,000 level is an area that a lot of people are paying close attention to, and as long as we can stay above the 29,000 level, I think you have a real possible move to the upside just waiting to happen.
That doesn't mean that it's going to be easy, and of course we have to keep in mind that a lot of traders will be watching very closely as the market participants out there continue to watch the interest rate markets in America. Because quite frankly, we have a situation where traders are going to have to watch the latest headlines to see what they do with interest rates.
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Interest Rate Pressure on Technology Stocks
Interest rates in America have exploded to the upside and that does tend to have a negative influence on stocks, especially when it comes to technology stocks. Technology stocks are very far out on the risk appetite spectrum for a lot of traders, and therefore they are hesitant to get too involved if rates start to shoot straight up in the air because you get paid to hold paper instead of risk assets such as a volatile technology stock.
If traders see rates drop though, that should help NASDAQ 100 in general, and I think drive it towards the 30,000 level. This weekend could be a bit difficult, but I also recognize that the headlines, although unpredictable, could also send rates lower if we get good news over the weekend, and then next thing you know is the NASDAQ 100 could be rallying.
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