The NASDAQ 100 initially rose on Tuesday but then got pummeled as someone knew something ahead of time.
The US losing a helicopter to Iranian fire has the Middle East on edge again.
The NASDAQ 100 initially rallied a bit during the trading session on Tuesday and rallied not only in the overnight hours, but when the Americans jumped on board as well. That being said, shortly thereafter all of a sudden everything started falling apart despite the fact that interest rates started to drop. It was a very confusing day for a while, at least until Donald Trump had announced that the US military had lost a helicopter being shot down by the Iranians. He demanded and stated that the United States would strike back, and once you got that news, it made sense that we are clearly seeing a situation where somebody knew about this ahead of time and had acted accordingly.
Structural Triggers and Downside Risks
Now, the question is, the markets have seen a couple of really negative candlesticks over the last three trading sessions. But even if we were to break down below the 50-day EMA, it could open up even further selling down to the 27,000 level. If we do hang on to the 28,500 level, that might offer some hope, but I think if you are bullish in this market, and you should consider that it is in such a massive uptrend, but you might be better off sitting on the sidelines.
Top Regulated Brokers
The 28,500 level is crucial, and like I said, closing above it is a good sign, but you have to be very cautious here. If we were to break down below the 50-day EMA, then the market could fall apart towards the 27,000 level, maybe even the 200-day EMA. We are hanging on by a thread right now. You do not want to be the first trader to start buying. Give it time, let it prove itself to you.
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