- You can see the NASDAQ 100 did try to rally a bit during the course of the early hours on Thursday but really has just petered out as the downtrend line has caused a bit of trouble.
- With that being the case, I think you've got a situation where traders are probably going to have to wait for some type of pullback in order to perhaps find enough value to get involved.
After all, this is a market that has been very choppy and difficult over the last several weeks and now we find ourselves struggling a bit in order to find enough clarity to continue going to the upside.
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That doesn't necessarily mean that we sell off. After all, we had a huge move on Wednesday, so I think maybe we're trying to digest some of that as well.
A Descending Wedge on the Chart
It is worth noting that we are in a descending wedge and the descending wedge, of course, could be broken. If we break above the highs of the day on Thursday, I would go ahead and consider that being the case. And then it's likely that we could see this market go looking to the 22,000 level. Underneath, I think there is support at the 50 day EMA as well as the 21,000 level. So, I think most traders believe that a dip is probably somewhat short-lived.
Keep in mind that a lot of this comes down to bond yields at the moment. And of course we are starting to enter earning season. So, it all comes together for noise. The noise of course is likely to continue to be something that you need to be cognizant of. But I also recognize that it is very likely that we find more of a buy on the dip attitude regardless.
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