The NASDAQ 100 has seen a bit of selling pressure at the moment, as we continue to worry about interest rates, as PPI came out hotter than anticipated.
NASDAQ 100
The NASDAQ 100 has been fairly negative during the early part of the trading session on Friday but is starting to try to come back around. I think, ultimately, this is a market where we are focusing on the idea of whether or not we can break above the 25,000 level. If we can get above the 25,000 level, it opens up the possibility of a move to much higher levels. If we get that, then I think we're probably looking at 25,400 followed by the 26,275 level. Somewhere under current levels, buyers will more likely than not show up again.
I do believe that ultimately the NASDAQ 100 will recover; it's just that things might be a little bit ugly between now and then. We are getting through earnings season and of course there are a lot of concerns out there when it comes to geopolitics, especially with the US military possibly attacking the Iranians, so that of course is on people's minds.
Support Levels and Market Trends
If we do fall from here, the 200-day EMA sits right around the 24,130 level and I think that is your floor. I think we just see continued choppiness and sideways action, but I do believe eventually we will break out to the upside; it's just a matter of being somewhat patient and that is unfortunately a major problem for a lot of traders out there.
The AI trade has somewhat blown up, so that's not helping, but we are starting to see a rotation throughout the stock market, not just the NASDAQ 100, so maybe we will get new leaders; we'll just have to wait and see. Regardless, I have no interest in shorting.