The NASDAQ 100 continues to see a lot of noisy trading on Monday, as the markets are still trying to figure out whether or not the situation in the Middle East is going to get better, or worse at this point.
NASDAQ 100
The NASDAQ 100 has been all over the place during the trading session here on Monday as we continue to just kill time above the 30,000 level. The 30,000-level underneath is a significant support level; it's also a psychologically important level as well.
If the market were to break down below there, then it could open up a drop toward the 29,600 level. A rally at this point in time opens up the possibility of a move to the 31,600 level. Anything above that area, then I think you start to see a lot of traders really pushing this market to the upside.
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Market Momentum and Key Catalysts
This is a market that has been very strong for a while. We pulled back, and now I think we're trying to figure out what we're doing here as far as overall momentum. With this, I think short-term pullbacks open up the possibility of a longer-term buying opportunity.
I do think that there is a lot of volatility out there, and I think a lot of concerns about the possibility of headlines coming out of the Middle East shocking the markets, or, quite frankly, some exhaustion in the artificial intelligence trade, which has been the biggest driver of all things in the NASDAQ for some time.
Nonetheless, there's nothing on this chart that tells me we should be short of the NASDAQ 100. I think we're just killing time trying to find the next catalyst to go to the upside, as traders are now starting to think about the Federal Reserve hiking rates by 25 basis points later this year.
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