The NASDAQ 100 has been firming ahead of the interest rate decision by the Federal Reserve on Wednesday.
NASDAQ 100
The NASDAQ 100 has been firming during the early part of the trading session as buyers have come in to defend it. We are in the lower part of the overall consolidation that we have seen over the last several weeks, and with the largest catalyst at this point in time being the interest rate market, it comes to fruition today as the 10-year yield has pulled back a bit from the 5% level.
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We have a Federal Reserve interest rate decision later in the day, widely anticipated to be a 25-basis-point hike that traders will look through and start to try and determine what the language of the statement and the overall press conference attitude is. With this being the case, the market is just keeping itself in a form of stasis, simply staying where it has been. With the market seeing such a flat 50-day EMA, it does make a certain amount of sense that we stay in this range.
Sometimes it's not what the market is doing that should catch your attention
Breaking to the upside, we have a major barrier in the form of 30,000 above, offering a bit of a headache for those who would be bullish. Ultimately, this market looks very much like one that is trying to do everything it can to reaffirm itself.
It has been rather resilient, all things being equal, as we have seen so much in the way of interest rate fears and geopolitical concerns that the market, at least historically speaking, should be selling off, yet it continues to ignore that. Sometimes it's what the market will not do, and right now the NASDAQ looks as if it is really struggling against any type of move to the downside, to the point where the bears might be starting to get exhausted again.
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