NASDAQ 100 has been somewhat positive during the month of September, but let's be honest here: we have a lot of noise going on at the same time that could cause some problems.
Interest rates continue to skyrocket, and this is unfortunately due to energy inflation coming out of the Middle East. The situation in the Middle East continues to be one that the market has to tussle with.
When I look at the shape of the market, we did rally quite a bit to test all-time highs. We pulled back a little bit to test the 30,000 level, but ultimately it looks like there are plenty of buyers underneath to keep this market afloat. The 28,500 level is an area that I'm watching very closely, and as long as we can stay above there, I think the NASDAQ 100 continues to be solid-looking overall.
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To the upside, the 32,000 level is an area that we might be watching
Breaking above there then opens up the possibility of a move to the 35,000 level. The 50-week EMA is sitting just above the 27,000 level, and that, of course, is an area that a lot of people will be watching. If we were to break down below, it could be a bit of a trend change. This would be a massive shift in the overall attitude, and something that would be watched closely.
Ultimately, this is the market that I think is going to pay the most attention to interest rates as far as U.S. indices are concerned. With the energy inflation, it could be a very rocky October, but it is worth noting that we've made a very strong shot higher, and perhaps there could be a little bit of follow-through with some positive headlines, or at least rates dropping a bit.
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