The Nasdaq 100 fell pretty significantly during the early part of the trading session on Tuesday to reach towards the 28,500 level but then bounced a bit to show signs of life.
Ultimately, this is a market that continues to be very noisy, and I think, of course, is watching the 10-year yield in America, as well as other bonds.
But the 10-year yield is, of course, a major yield that a lot of traders will put into their systems or into their analysis. So, with that being said, I think you've got a situation where traders are going to have to watch whether or not the market sees any relief whatsoever in the bond markets anytime soon.
We have gone straight up in the air, and that is really causing chaos. It, of course, has a major negative effect on technology stocks. So, with that, you have to be somewhat cautious here in the Nasdaq 100.
Finding Its Footing
Now, having said that, I do think this is a market that will try to find its footing here, going sideways for a while, and that makes sense. We had gone straight up in the air for so long that a little bit of exhaustion almost certainly has to come back into the picture.
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Even if we broke down below the 28,500 level, the 27,000 level would be my next target, right around the 50-day EMA.
To the upside, the 30,000 level, of course, is an area I'll be watching because it's a large, psychologically important figure that will attract a lot of headlines. I do favor buying the Nasdaq, I just think little pullbacks are probably what you're looking for to take advantage of.
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