The NASDAQ 100 continues to see a lot of noisy trading overall, but on Friday, it's clearly all negative. With the ability to get paid a real return on bonds, it's starting to really hurt gold.
NASDAQ 100
The NASDAQ 100 fell pretty significantly during the trading session here on Friday, blowing through a demand zone. This is an interesting turn of events.
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It certainly looks pretty horrific, but that being said, it's also likely that we continue to see buyers on dips. It seems like real yields are really starting to work against the value of stocks and the valuation of stocks.
The reality is that market participants still see the NASDAQ 100 as sideways. All things being equal, though, if we turn around and break above the 29,000 level, the market could go looking to the 30,000 level, possibly even 31,000. The 200-day EMA sits near the 28,220 level, and really at this point in time, despite the fact that we have seen a little bit of fear out there, the reality is that market participants still see the NASDAQ 100 as sideways.
A lot of questions now
Ultimately, this is a market that's just trying to figure out where to go next. We do have earnings calls going on, but I think the bigger story here is going to be about fear in general.
So, with this, I'm waiting for a reversal candle to start buying. I do not wish to short the NASDAQ 100, despite the fact that it's been pretty ugly over the last couple of weeks. Quite frankly, we've seen this before.
GDP being a little hotter than anticipated in the advance numbers perhaps has people worried about the Federal Reserve raising rates, but really nothing has changed, at least not from a substantive point of view. So, this is just more sideways consolidation in the longer-term uptrend.
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