- The NASDAQ 100 turned things around during the trading session on Thursday, as it looks like the buyers are starting to come back into the picture.
- With that being the case, I think it’s probably only a matter of time before we must turn things around yet again, as we are going to be looking at a jobs report on Friday that obviously causes a lot of headaches.
- In this scenario, traders will be paying close attention to whether those jobs figures continue to rise, because if they do then there are a lot of concerns that the Federal Reserve may continue to be very tight.
Keep in mind that the NASDAQ 100 is driven by 7 companies overall, which of course are all the usual suspects like Tesla, Meta, Alphabet, etc. With this, as soon as they come to “shoot the generals”, the NASDAQ 100 is going to fall like a stone. After all, there’s only so much out there to celebrate, and of course, it would not take much for the Fed to spoof the market. It’s been somewhat astonishing to watch, as Wall Street continues to ignore the Fed, basically telling them that they are going to be raising time soon.
The Market Could Start to Break Apart
That’s probably the biggest threat to the markets right now, if the Federal Reserve suddenly becomes even more hawkish, and some people are suggesting that they may at this point, that could really throw the market into a bit of a tizzy. Underneath, I see the 13,750 level as a major support level, and we need to pay close attention to that. If we were to break down below there, then the market could really start to break apart, perhaps reaching down to the 50-Day EMA.
On the upside, if we clear the shooting star from the Tuesday session, it opens the possibility of a move to the 15,000 level, which of course is a large, round, psychologically significant figure, and an area where a lot of traders would be looking to take profit just due to the psychology and the newsworthiness of that level being touched. It does look bullish, but I would prefer to see it pulled back a bit further before putting money to work.
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