The Nasdaq 100 bounced early on Monday, as we continue to see a lot of questions asked about the overall risk appetite globally.
NASDAQ 100
The Nasdaq 100 bounced during the early part of the session here on Monday as traders continue to pay close attention to a variety of problems, not the least of which would be the Middle East in general. The noise in the Middle East continues to be a major problem, and as long as that's the case, you have to be concerned about the random headline coming out and spooking everybody and everything in the market.
With this, I do not like the idea of trying to get too cute here. I think you have a situation where traders are going to continue to see a lot of volatility and noise, but it's worth noting that the 28,500 level is an area that's been important more than once, and I think will continue to be an area that offers support.
Evaluating Earnings Season and Technical Resistance
If we rally from here, then you could have an argument for the market to test the 50-day EMA, which of course is an indicator that a lot of people pay close attention to and an indicator that will capture a lot of headlines. In that environment, you have to assume that it is probably a market that would have a little bit of a problem, but that problem could end up being what releases the market towards the 30,000 level if we can break above it. After all, market participants will be looking for momentum.
Momentum is a little bit lacking at the moment, but we are heading into earnings season, and that, of course, causes a lot of noise. All things being equal, though, when I look at this market, I recognize it as one that continues to see a lot of choppiness and concerns, but overall, we're basically sideways.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.