- The Nasdaq 100 shows hesitation after giving up early gains, with the price pressing against a key trend line.
- A break below Friday’s lows could trigger a deeper pullback, though longer-term momentum still favors eventual upside.
The Nasdaq 100 initially did rally during the trading session on Monday but gave back those gains rather quickly as we continue to see a lot of hesitation. The 25,000 level has been given up, and I do find this interesting because we are closing at the end of the session right up against the trend line that I think a lot of traders are watching.
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That trend line did hold on Friday, and it is so far trying to hold, but if we break down below the lows of Friday, we could see this market really start to die. In that environment, you could get a situation where we go look into the 24,000 level, possibly even the 23,250 level. The Nasdaq 100 is not an index that I want to short anytime soon, but there are a lot of concerns out there about the AI bubble, and there's just a weird general malaise when it comes to stock markets overall, with AI perhaps starting to grind down.
We'll just have to wait and see. There is an occasional little shakeout in the markets, and then we continue higher. That might be what we're getting ready to do. We'll just have to wait. But really, at this point in time, I don't see any reason to short this market. I think it's just one that you may get an opportunity to buy on the dips. If we break down below the lows of the Friday session, then maybe we could get a situation where traders could start to look at this as a situation where we could get a little bit ugly here, but I think that short lived and over the longer term, I still believe that the Nasdaq 100 rallies quite significant because that's what it's built to do.
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