The Nasdaq 100 fell a bit in early trading on Wednesday, as we continue to see downward pressure. However, most of this would be “working off the froth” from the previous uptrend.
NASDAQ 100
The Nasdaq 100 fell again during the trading session on Wednesday as we continue to see risk appetite get eviscerated. Ultimately, I think the market is likely to continue to see the massive AI selloff as the main culprit, but at this point in time, when you look at the chart, you can see that we had rallied quite significantly for several weeks, and now, we just seem to be trying to figure out some type of range.
It's pretty common for the markets to try to find some type of balance or range that we continue to hang around in. That is typical to work off the excess froth, and I think that's all we're going through right now.
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Market Outlook and Technical Levels
After all, this is a market that I think, given enough time, we will have to look at through the prism of a market that is still very much in an uptrend, and I do think the value hunter will continue to return.
The Nasdaq market right now, I think, continues to look at the 28,400 level as a floor, and if we were to break down below there, then we could fall apart. On the other hand, if we bounce from here, the market will reach the 30,500 level, which is where we saw a lot of resistance. Breaking that obviously is a bullish sign, and I do think it happens eventually.
All things being equal, this is a market that I'm looking for a bounce to start buying into. We don't have that yet, so a little bit of patience probably goes a long way in this market.
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