- The Nasdaq 100 declined early Thursday, nearing the 25,000 level amid volatility and questions about AI profitability.
- While short-term choppiness may persist, the speaker remains cautiously bullish, viewing pullbacks as healthy and likely temporary.
The Nasdaq 100 fell somewhat significantly during the early hours on Thursday and continued to do so. With that being said, the market is likely to experience a lot of noisy behavior as we approach the 25,000 level. The 25,000 level is a large, round, psychologically significant figure and an area that many traders will watch closely given the prior activity there. The 50-day EMA is also nearing that level, adding technical importance.
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Trying to Find Value in this Market
Ultimately, most traders seem to be viewing this setup through the lens of finding value. Whether or not that value materializes remains to be seen, but it’s clear that many are eyeing technology stocks that have become cheaper. Much of the current movement appears tied to doubts surrounding AI and artificial intelligence profitability, as Wall Street once again got ahead of itself with that narrative.
If the Nasdaq 100 breaks down below the 50-day EMA, we could see a deeper pullback toward the 24,000 level, though that doesn’t seem particularly likely at the moment. I remain somewhat bullish but recognize that the market may need time to stabilize before moving higher. Over the longer term, I still expect the index to climb significantly, but not without challenges along the way.
It’s also worth noting that volatility and choppiness are likely to persist—not just for the Nasdaq 100 but across most indices. Global demand concerns, along with ongoing geopolitical tensions and trade war headlines, continue to weigh on sentiment. I’m bullish, but cautiously so, and I believe these pullbacks are both healthy and necessary, unlikely to cause lasting damage in the broader uptrend.
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