The Nasdaq 100 looks miserable early on Monday.
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NASDAQ 100
The Nasdaq 100 breaks down early on Monday as, despite the fact that we had seen this market try to turn around, the 28,500 level has caused some issues. And of course, we continue to see the chaos that is volatility. Early in the session, we typically have seen a lot of selling pressure, mainly from foreign entities, but later in the day, we've seen resiliency come back in. The question now is whether or not that will happen during the Monday session. It is very difficult to tell, but this certainly has the look of a market that is going to be struggling.
If that's going to be the case, then I believe you have to look at this through the prism of where it goes next, and the 27,000 level could very well be a potential target. The 25,000 level underneath there was a major support level. The 200-day EMA is approaching that area, so it is worth watching very closely.
Rounding Top Pattern Signals Potential Test of Key Support Levels
Ultimately, this is a market that I think finally is starting to form a little bit of that rounding top that it looked like it was trying to previously. If we don't get some type of serious pushback during the session, this could lead into something much worse.
The world is starting to realize that things are getting pretty bad in the Middle East situation despite the fact that we did, in fact, see the Americans stop bombing, and the Iranians say that they were willing to stop as well. But ultimately, the world's looking for an off-ramp out of this situation, and it's just not getting it. In fact, I think people are starting to come to the conclusion that possibly there is no off ramp, and if that's going to be the case, this will continue to be a problem, and rates will continue to be threatening going higher. Despite the fact they fell today, they are extraordinarily high. There are concerns about the AI trade in general, and as a result, the Nasdaq looks soft all of a sudden.