The Nasdaq 100 remains noisy, but strong early on Tuesday, as the markets continue to watch the situation in the Middle East, and the interest rate markets.
NAS100
The Nasdaq 100 was very strong during the trading session on Tuesday as we continue to see a lot of upward pressure in general. The market is likely to continue to see the $30,000 level offer a bit of a target, and I do think it's probably only a matter of time before short-term pullbacks would attract buyers.
The Nasdaq 100 is getting a bit of a boost for a multitude of reasons, not the least of which would be more risk appetite as interest rates are dropping. That helps the idea of traders taking advantage of cheaper financing going forward. While I don't necessarily think the interest rate situation is done being an issue, currently it certainly looks like the market is willing to celebrate, at least in the short term.
Navigating Key Levels and Federal Reserve Expectations
The 28,500 level is an area that's been important a multitude of times, and I think that will continue to be what we need to focus on. The traders out there continue to see a lot of headwinds and a lot of potential problems, so I think volatility makes sense.
This stunning turnaround, of course, has been almost straight up in the air, and this is partially driven by the idea that the Federal Reserve may have to cut rates later. I don't know if I buy that quite yet, and I think it's early, but the earnings season has been reasonably decent. That doesn't hurt either, and as a result, it's likely that the Nasdaq 100 will see a lot of that hot money coming back into the artificial intelligence trade, as Wall Street tends to be a one-trick pony at times.
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