During the trading session on Wednesday, we've seen the Nasdaq 100 really take off to the upside, but it has reversed quite a bit and, quite frankly, I think that makes quite a bit of sense, mainly due to the fact that we have just gotten so overextended.
Ultimately, this is a market that I think looks at the 30,000 level as a pretty significant barrier, and earlier we were well above there, but you can see the market has pushed back. That's not a huge surprise, I guess, and we are starting to see interest rates trying to turn around and move to the upside.
Market Overextension and Support Targets
The resulting candlestick looks quite a bit of a shooting star. If that ends up being the case, it wouldn't surprise me at all to see this market drop down to the 29,500 level, and it's probably worth noting that we are in the midst of earnings season as well.
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Ultimately, I think the NASDAQ 100 remains bullish. It just doesn't necessarily mean that it goes straight up in the air forever. If we were to break above the top of the candlestick, that could really send this market much higher.
Ultimately, though, I believe this is a market that I think anytime it drops, you have to believe that it is offering you some type of value. That's been the case since the beginning of April, and here we are close to the beginning of June and we have skyrocketed. There's been a few red days here and there, but for the most part, this has been very bullish. The 28,500 level for me is the floor at the moment.
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