The NASDAQ 100 rallied overnight pretty significantly but has turned around as the American traders came on board.
This makes a certain amount of sense as Nvidia has declined quite drastically and, of course, there are a lot of concerns out there when it comes to the Mega Cap earnings with Microsoft, Alphabet, Amazon, and Meta coming out during the previous session.
This is a market that has a massive amount of news and earnings being thrown at it currently.
There are still somewhat significant concerns about Open AI missing revenue targets and high artificial intelligence capital expenditures having introduced some bubble jitters. Apple will be in focus today as it reports earnings and, at the same time, you have interest rates which have climbed quite significantly, even topping the 4.40% level during the previous session.
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All things being equal, you would think that the so-called Magnificent 7 continue to lead, but the Nasdaq 100 will also have to find some reason to get long again. We have extended so far and in such a short amount of time that it does make sense that we would see a nice pullback that we can take advantage of.
The 26,275 level is an area that previously had been resistance, so I would look at this as a potential area of significant support, but we will just have to wait and see whether or not the market can continue to see a lot of buyers on dips. I think at this point you have to assume sooner or later we will go higher, but a little bit of consolidation might be just what the doctor ordered.
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