The Nasdaq 100 fell during the trading session here on Tuesday and ended up falling below the 50-day EMA. At this point, this is a market that continues to watch a lot of different factors, both internal and external.
NASDAQ 100
The Nasdaq 100 fell during the trading session here on Tuesday to break below the 50-day EMA, but as you can see, we are somewhat stagnant later in the day. It'll be interesting to see how this plays out because it is a situation where we are looking at interest rates still being strong and still being very influential.
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That being said, we have to keep an eye on headlines unfortunately coming from the Middle East as well as the Federal Reserve. And it's probably worth noting that traders are going to continue to see the situation as very fluid, very difficult, very dangerous. I think we're compressing as we head into the jobs number.
Fed Rate Expectations, Middle East Tensions, and Jobs Data
The jobs number on Friday could end up being a major mover as traders have to discern whether or not the Federal Reserve really can hike rates. If the jobs number comes out much stronger than the 55,000 addition expected, that could be ugly for traders trying to get long; a certain amount of risk appetite might be destroyed.
Nonetheless, when you look at the chart, it still is basically sideways despite the fact that it's been kind of chaotic for a few months. Because of this, I remain somewhat bullish, but I also recognize that I need to see some momentum to the upside.
As long as we're above 28,500, I'm okay with this market. But you can't get married to a position right now; it's just simply too volatile. This is a market that will have to be traded more in a short-term kind of environment, but still remains supported below.
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