NASDAQ continues to see a lot of buying on dips recently, and the Tuesday session appears to be more of the same at the moment. Semiconductors getting crushed in Seoul overnight was a bit of an issue early, though.
NASDAQ 100
The NASDAQ 100 initially pulled back just a bit during the trading session on Tuesday, testing the 30,250 level. The 30,250 level is an area that has been somewhat supportive and previously had been resistant. The 50-day EMA is starting to reach toward that area, and I think ultimately, this is an area that a lot of people will be looking at as potential value.
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The earnings calls were mainly about banks, so they did not have as much of an influence on the NASDAQ 100. However, it is worth noting that in South Korea, we saw semiconductors absolutely crushed overnight, losing something like 5%, as Chinese semiconductors are starting to meet certain benchmarks. I do not think that is really the story here at the end of the day. It was perhaps a little bit of a knee-jerk reaction from overseas.
Speaking of value, or maybe better put, valuations
Now, it looks like traders are trying to get in and find a little bit of value. Interest rates dropping in America, as they have been over the last couple of days, could help the NASDAQ 100 because valuations become a little more palatable. We will have to see if this relief can last for any type of duration.
Ultimately, this is still very much a buy-the-dip type of market, and I think that is how I am going to continue to look at it. I am a buyer of the NASDAQ 100 eventually, but I also recognize that we continue to hang on every word from the Middle East and Washington, D.C. as well.
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