The Nasdaq 100 spent most of the month of June going back and forth. This makes sense considering that we went straight up in the air for several months previously, and now we have to reassess the entire situation because, quite frankly, the war in the Middle East is all but over, and, ironically, the war really drove these stocks higher.
I think now we have a situation where the market is just trying to figure out what to do next. Furthermore, I'd point out that this time of year is typically somewhat sideways, and you have to understand that seasonality does have a part to play here.
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At the moment, it looks like the 28,500 level is an area that a lot of people will be watching for potential support. If we were to break down below there, then maybe we get a little bit of a deeper correction, maybe even as low as 26,000.
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To the upside, if we can clear the 30,500 level, then it could kick off the next run higher, but we need something to get momentum moving again. As things stand now, the market is in a period of statis.
Ultimately, this is a market that I think remains noisy in the early part of July, but by the end of the month, we may have some type of resolution. More likely than not, it will be a continuation of the uptrend, but we don't know that for a fact. If we break below that crucial 28,500 level, I will simply wait for a little bit of a deeper correction offering more value. I do not have any interest in shorting the Nasdaq 100 with the information that I have at the moment, and quite frankly, I don't see why it would suddenly sell off. More likely than not, we will see more of a grind to the upside before it is all said.
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